Boeing has created a stir on the second day of the Paris Air Show 2015 by announcing firm orders and other commitments for 192 single-aisle aircraft from its 737 MAX and 737NG families, from five customers.
Three of the 737-family customers with orders announced on June 16 at the Paris Air Show are leasing companies, which together announced orders and commitments on the show’s second day for 140 Boeing 737 MAX and 737NG jets.
Leading the way is AerCap, the world’s largest aircraft leasing company, which has announced a firm order for 100 Boeing 737 MAX 8s.
The order, which Boeing values at $10.7 billion at current list prices, is AerCap’s first 737 MAX order.
“This order complements our existing order book in the single-aisle category and is in line with our customer needs and our fleet strategy of leasing the most-in-demand and technologically advanced equipment,” says AerCap CEO Aengus Kelly. “We see significant market appetite for this aircraft type from our diverse customer base spanning approximately 90 countries around the world.”
AerCap has a portfolio of 1,800 aircraft which it owns, manages, or has under contract to purchase. It serves more than 200 customers in more than 90 countries and provides part-out and engine leasing services through subsidiary AeroTurbine.
China’s Ruili Airlines is one of two Chinese customers announced at the Paris Air Show on June 16 which has committed to purchase 30 new 737s. Ruili Airlines will purchase 30 737 MAXs with the financial support of AVIC International Leasing, amid a surge in China’s passenger traffic.
The commitment, which Boeing values at $3.2 billion at current list prices, will be subject to the approval of the Chinese government and Boeing will be posted the order to its Orders & Deliveries website once all contingencies are cleared.
Today Ruili Airlines operates 34 daily flights on 11 scheduled routes with a fleet of five Boeing 737NGs.
According to its development plan, the start-up carrier will expand its fleet to seven aircraft by the end of this year and to 26 aircraft by 2020.
Kunming-based Ruili Airlines obtained its public air transport enterprise business license from the Civil Aviation Administration of China (CAAC) in February 2014, marking the formal establishment of the carrier. The start-up airline is the first private carrier approved by CAAC after the regulator relaxed restrictions on new carriers in 2013.
The other Chinese customer committing on June 16 to take 30 Boeing 737s is Minsheng Financial Leasing, which has signed a memorandum of understanding at the Paris Air Show to order a 30-aircraft mix of 737NGs and 737 MAX jets.
As one of the first five leasing companies approved by China Bank Regulatory Committee, Minsheng was founded in April 2008 by China Minsheng Banking Corp, the largest private commercial bank in China.
One of China’s top-tier aircraft lessors, Minsheng has become China’s biggest lessor of business jets. In 2013, Minsheng entered the commercial-aircraft leasing market, focusing on high-demand aircraft types.
Minsheng already owns more than 30 commercial aircraft, which it leases to more than 10 airlines customers internationally.
Another leasing-company customer for the 737 on June 16 is SMBC Aviation Capital, one of the world’s largest aircraft lessors, which has ordered for 10 737 MAX 8s.
This deal adds to a 2014 order placed by the Dublin-based lessor for 80 737 MAX 8s, giving SMBC Aviation Capital a total of 90 737 MAX 8s on order.
SMBC Aviation Capital has a fleet of more than 370 owned and managed aircraft valued at more than $10.5 billion, which includes 180 Boeing jets. The leasing company has 95 airline customers and 42 investors in more than 40 countries around the world.
Apart from its headquarters in Dublin, SMBC Aviation Capital has offices in Tokyo, Shanghai, Beijing, Hong Kong, Singapore, New York, Amsterdam, Toulouse and Seattle.
The fifth 737 customer announced by Boeing on June 16 is Indonesian carrier Sriwijaya Air, which has ordered two 737-900ERs.
Sriwijaya Air’s order, which Boeing booked before the Paris Air Show and previously attributed to an unidentified customer, is the airline’s first all-new aircraft purchase and includes a letter of intent to exercise options for up to 20 additional 737s.
Based in Jakarta, Sriwijaya Air is Indonesia’s third largest carrier, according to Boeing. The airline operates an all-Boeing fleet of 737 Classics and 737NGs and operates scheduled services to various Indonesian destinations as well as a few international cities.
Engine manufacturing consortium CFM International, whose CFM56-7B engines power all Boeing 737NGs and whose LEAP-1B engines will power all Boeing 737 MAX aircraft, is a major beneficiary of the June 16 Boeing 737 order announcements.
Together the five customers placing the orders have ordered nearly 400 CFM56-7B and LEAP-1B engines to power their new 737s, in deals which CFM International values at a total of almost $4.6 billion.