Key facts
- Avolon ordered 140 Boeing 737 MAX jets.
- Avolon ordered 75 Airbus A320neo planes.
- Avolon ordered 35 Airbus A330neo planes.
- Avolon has an option for 100 additional Airbus aircraft.
- The lessor's total aircraft on order reaches 749.
- The orders are subject to approval by majority shareholder Bohai Leasing Co Ltd.
Global aircraft leasing giant Avolon announced on Friday it had placed its largest-ever orders with both Boeing and Airbus, agreeing to purchase 140 aircraft from Boeing and 110 from Airbus, with an option for an additional 100 Airbus jets. The Dublin-based lessor's new orders comprise 140 Boeing 737 MAX jets, 75 Airbus A320neo planes, and 35 of the wide-body A330neos. These agreements bring Avolon's total number of aircraft on order to 749, in addition to the 561 aircraft it currently owns. Aircraft lessors play a significant role in the airline industry, owning about half of the world's fleet and experiencing high demand due to backlogs in plane orders. This trend has supported rental rates, resale values, and profits for lessors, enabling companies like Avolon to sell older planes and acquire newer, more fuel-efficient models. Avolon also reported selling 29 aircraft during the third quarter and agreeing to sell another 112 by the end of September. CEO Andy Cronin stated that the company continues to see strong demand for new-technology aircraft, as reflected in its trading activity. The new orders are contingent on approval from Avolon's majority shareholder, China's Bohai Leasing Co Ltd, which is anticipated before the end of October.