AerCap LOI for up to 15 737-800s Is Leasing Firm’s First Boeing Order

Amsterdam-based leasing company AerCap Holdings N.V. has signed a letter of intent with The Boeing Company covering the purchase of up to 15 new Boeing 737-800s.

The contract specified in the letter of intent covers a firm order for 10 737-800s and purchase rights on five more. It represents the leasing company’s first Boeing order, according to Klaus Heinemann, CEO of AerCap.

“We are extremely pleased to enter into a direct purchase arrangement with Boeing. While AerCap’s portfolio of lease assets already contains a large number of Boeing aircraft, this is the first time that AerCap will buy directly from the manufacturer,” says Heinemann. “The 737-800, with its recently announced performance upgrade, its new cabin interior and the superb on wing performance of its CFM engines makes it a formidable competitor to any re-engine alternative.”

A Boeing 737-800 in the new United Airlines livery successfully completed its first test flight late on a very rainy day in the week ending November 14, 2010, signifying the start of certification for a package of 737 performance improvements. Testing and certification continue through April 2011. Aerodynamic and engine changes included in the package will reduce fuel consumption by 2 per cent, according to Boeing, which is phasing the changes into production from mid-2011 through early 2012

One of the largest aircraft-leasing companies in the world, AerCap – which call itself AerCap Aviation Solutions – has been known mainly for its extremely close relationship to Airbus. Although AerCap has not directly ordered aircraft from Boeing until now, the Amsterdam company and joint-venture affiliates has placed three large orders in the past for a total of 132 Airbus jets and AerCap took delivery of its 100th new aircraft from Airbus in September.

As of September, AerCap’s total fleet of 327 owned, managed and on-order aircraft included 215 Airbus aircraft.

AerCap’s three major orders with Airbus include an order for 30 A330s in 2007; a joint-venture order for 70 A320-family aircraft in 2006 together with a Kuwait-based partner whose 50 per cent stake in the AerVenture JV was subsequently sold to Abu Dhabi-based Waha Capital (which then sold the 50 per cent stake in AerVenture to AerCap last week as part-payment for a 20 per cent stake in AerCap itself); and AerCap’s original Airbus order, for 32 A320-family aircraft in 2000.