DUBLIN, Oct 9 (Reuters) – Global leasing giant Avolon said on Friday it had agreed to order 140 aircraft from Boeing and 110 from Airbus, with an option to buy a further 100 jets from the European planemaker.
The orders were the largest Avolon, the world’s third-biggest aircraft lessor, has placed with either manufacturer and bring its total number of aircraft on order to 749, on top of the 561 it currently owns.
Dublin-based Avolon said the order comprised 140 Boeing 737 MAX jets, 75 Airbus A320neo planes and 35 of its wide-body A330neos, with options for a further 100 unspecified Airbus aircraft.
Aircraft lessors own around half the world’s airline fleet and have been in hot demand from airlines in recent years due to a backlog of plane orders, a trend that has supported the specialist industry’s rentals, resale values and profits.
It has also allowed leading lessors like Avolon to sell their older planes to make room for more fuel-efficient new-technology aircraft.
Avolon said in a trading update on Friday that it had sold 29 aircraft during the July-September quarter, with a further 112 aircraft agreed for sale at the end of September.
“We continue to see strong demand for new-technology aircraft, reflected in our placement and trading activity this quarter,” Avolon CEO Andy Cronin said in a statement.
The new orders are subject to approval by Avolon’s majority shareholder, China’s Bohai Leasing Co Ltd, which the lessor said is expected before the end of this month.
(Reporting by Padraic Halpin; editing by William James and Susan Fenton)
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