Avolon adds 250 Airbus and Boeing aircraft to its order pipeline
Aircraft lessor Avolon announced agreements for 250 aircraft from Airbus and Boeing, extending the supply it can offer airline customers. The orders cover 140 Boeing aircraft and 110 Airbus aircraft, with additional Airbus options. Approval by the shareholders of its majority owner Bohai Leasing remains a condition. Avolon also disclosed aircraft sales, lease activity and financing in its third-quarter update.
Economics & Markets··Midday
The order spans both major aircraft manufacturers
Avolon, the Dublin-based company that finances aircraft and leases them to airlines, announced orders for 250 aircraft from Airbus and Boeing on 9 October. The agreements extend the aircraft supply available for its airline customers’ long-term fleet requirements.[1], [2]
Boeing supplies 140 aircraft from its 737 MAX family. The Airbus agreement covers 75 A320neo-family aircraft and 35 A330neo-family aircraft, alongside options for a further 100 aircraft. Avolon reports total firm aircraft commitments of 749 following the new orders.[1]
Bohai Leasing shareholders still need to approve
The orders remain subject to approval by shareholders of Bohai Leasing, the company that owns 70 per cent of Avolon. Avolon expects that approval before the end of October. Its owned, managed and committed fleet stood at 1,092 aircraft on 30 September; adding the new orders on a pro-forma basis brings the total to 1,342. The company works with 138 airlines in 62 countries.[1]
Aircraft trading and new financing accompany the fleet orders
During the third quarter Avolon acquired 10 aircraft, sold 29 and agreed to sell another 112. It placed 28 aircraft from its commitments with customers and completed 84 lease agreements, extensions and amendments. It had placed 89 per cent of its committed fleet for the next 24 months.[1]
Avolon also established a 1.5 billion dollar commercial paper programme and completed an 855 million dollar unsecured term loan with banks primarily Asian. The financing update accompanies the company’s quarterly aircraft and leasing activity.[1]
