By Padraic Halpin
DUBLIN (Reuters) -Global leasing giant Avolon said on Thursday it had committed to ordering 40 Boeing 737 MAX aircraft in a deal worth over $4 billion at current list prices, a boost for the U.S. planemaker as it grapples with fresh delivery issues.
Avolon, the world’s third largest aircraft leasing firm, said the new jets are scheduled for delivery from 2027 to 2030 and will increase the overall size of its owned, managed and committed fleet to 870 aircraft.
The deal comes a day after Boeing said that it planned to ramp up production of the 737 MAX jets during the back half of the year to make up for a slowdown in the second quarter to fix manufacturing issues.
“Our commitment with Boeing reflects our confidence in the long-term outlook for the aviation sector, and increases our portfolio of young, modern, fuel-efficient aircraft,” Chief Executive Andy Cronin said in a statement.
“It will also support our airline customers who are looking to plan beyond the robust post-COVID traffic recovery and prepare for future growth, while also reducing their carbon emissions.”
Before Thursday’s transaction, rival Airbus’ best-selling A320neo family of jets made up 184 of the 252 jets Avolon had committed to buying.
The deal with Boeing is subject to approval by Avolon’s majority shareholder Bohai Leasing Co. Bohai is a majority-owned subsidiary of China’s HNA Group.
The Dublin-based lessor also said on Thursday that demand for aircraft remains strong, with high levels of leasing activity amid a continued shortage of aircraft.
It said global passenger traffic continued to grow in the first quarter, with the reopening of the Chinese market an important catalyst as it delivered $599 million of lease revenue and net income of $56 million from January to March.
(Reporting by Padraic HalpinEditing by Tomasz Janowski and Elaine Hardcastle)
