Leasing company Avolon has finalized a firm order for 10 Boeing 737 MAX 8s, five 737 MAX 9s and 10 Boeing 737-800s.
Boeing values the order, first announced as a commitment at the Farnborough International Airshow 2012 in July, at $2.4 billion at current list prices.
“Avolon has a strategic role in the leasing industry and the experienced leadership team understands the importance of having advanced, fuel-efficient airplanes to meet their customers’ needs,” says Bill Collins, vice president of leasing sales for Boeing Commercial Airplanes. “This order reinforces the value of the 737 MAX in today’s aviation finance marketplace.”
The Boeing 737 MAX is a new-engine variant of the world’s best-selling commercial jet family and builds on the strengths of today’s Boeing 737NG family, according to Boeing. The 737 MAX design will incorporate latest-technology CFM International LEAP-1B engines.
Boeing claims airlines operating the 737 MAX will see a 13 per cent fuel-use improvement over today’s most fuel efficient single-aisle aircraft and an 8 per cent operating-cost-per-seat advantage over tomorrow’s competition.
Other manufacturers dispute these claims, in part because neither CFM International nor Boeing have finalized their designs yet but also because several other manufacturers are offering completely new competing airframe designs optimized with either the LEAP-1 engine or the competing Pratt & Whitney PurePower PW1000 series engine, where Boeing is offering a derivative design.
“Our customers are always looking for more fuel-efficient airplanes,” said John Higgins, president and chief commercial officer for Avolon. “The 737 MAX will provide the fuel efficiency and operating economics airlines need to be successful. The 737 MAX is in high demand worldwide and securing valuable, attractive positions early in the MAX program ideally positions Avolon to best serve our growing global customer base.”
With this order, Boeing now has firm orders for 664 orders for 737 MAX jets from seven customers.
Headquartered in Ireland, with offices in Stamford in Connecticut, Hong Kong, Shanghai, Singapore and Dubai, Avolon provides aircraft-leasing and lease-management services. Avolon’s investors include three of the world’s leading private equity firms: Cinven, CVC Capital Partners and Oak Hill Capital Partners and one of the world’s leading sovereign wealth funds, Government of Singapore Investment Corporation (GIC).
The primary asset focus of the business is on young fuel-efficient aircraft such as the Airbus A320, A320neo and A330 families, the Boeing 737NG, 737 MAX, 777 and 787 families; and, the Embraer 190 family.
Avolon has a committed fleet of 164 aircraft serving 34 customers in 22 countries. Avolon says its fleet is the youngest large-lessor fleet in the world.