Leasing companies dominated Boeing’s order announcements on the second day of the Farnborough International Airshow 2014, three lessors accounting for all of the firm orders Boeing announced during the day.
On July 15 at the Farnborough Airshow International 2014, Air Lease Corporation (ALC) announced an order for 26 Boeing jets. The Los Angeles-based lessor ordered six more 777-300ERs and reconfirmed an earlier commitment for 20 737 MAX 8s as an order.
Boeing values the Air Lease Corporation order at $3.9 billion at current list prices.
This 737 MAX order for 20 aircraft, which the manufacturer values at more than $2 billion at current list prices, brings Air Lease Corporation’s combined orders for the Boeing 737 MAX family to 104 jets.
ALC’s Boeing 777-300ER order, which Boeing values at more than $1.9 billion at current list prices, marks the 100th 777 ordered by ALC Chairman and CEO Steven Udvar-Hazy during his career in the industry.
For more than 30 years Udvar-Hazy was the CEO of leasing giant International Lease Finance Corporation, but left the company ssome 15 years after it was purchased by American International Group in the early 1990s.
Udvar-Hazy is reckoned one of the three or four most influential executives in the commercial-aviation industry in terms of both his network of senior industry contacts and his influence on the specification and design of new commercial jets.
“Additional 777-300ER and 737 MAX airplanes in our portfolio provide the economics and passenger-pleasing experiences our airline customers require,” says Udvar-Hazy. “The 777 has maintained a broad customer base and will continue to do so well into the future. The 737 MAX represents game changing efficiencies and improvements for the environment in the single-aisle market.”
Also on July 14, lessor Intrepid Aviation placed its first direct order with Boeing for six 777-300ERs, in a transaction the manufacturer values at $1.9 billion at current list prices.
Intrepid Aviation also has the option to purchase an additional four 777-300ERs. If all options are exercised, the value of today’s announcement could reach more than $3.2 billion at list prices, according to Boeing.
“The economics of the 777-300ER are outstanding and offer an attractive growth potential for our airline customers,” says Franklin Pray, Intrepid Aviation’s president and CEO. “We are pleased to work with Boeing and add this order of the most popular twin-aisle aircraft of all time to our existing fleet of 777-300ERs.”
“We are excited to add Intrepid Aviation as a new Boeing customer,” says John Wojick, senior vice president, global sales and marketing, for Boeing Commercial Airplanes. “This significant commitment to the 777 reflects their position as a leading widebody lessor providing airlines with the most modern and fuel efficient aircraft available today.”
In another July 15 Boeing order, finance company CIT Group Inc. announced that its aircraft-leasing and trading subsidiary CIT Aerospace had placed an order for 10 Boeing 787-9 Dreamliners, in a deal which the manufacturer values at $2.5 billion at current list prices.
This brings CIT Aerospace’s total Boeing 787 orders to 20 aircraft, including 16 787-9s.
“We are pleased to place this order for 10 787-9 Dreamliner aircraft,” says Jeff Knittel, president of CIT Transportation & International Finance. “These aircraft will add to our growing fleet of fuel-efficient aircraft that remain in high demand from our airline customers, who also seek state-of-the-art aircraft that provide increased comfort and convenience for the traveling public.”