Avolon agrees $18b deal for 140 Airbus, Boeing jets

Global leasing giant Avolon said on Tuesday it had agreed to order 100 A321neo aircraft from Airbus (AIR.PA) and 40 737 MAX aircraft from Boeing in a deal its owner said was worth a combined $18b at list prices. The Irish-based lessor's Chinese owner Bohai Leasing Co Ltd said in filings to the Shenzhen Stock Exchange that the value of the Airbus deal was about $12.95b, based on the planemaker's 2018 list prices, with the Boeing transaction valued at about $4.9b based on its list prices. Major airlines and lessors typically get large discounts from planemakers. Bohai, which holds a 70% stake in Avolon, said the purchase price was "somewhat discounted" from the list price. Avolon said the new jets are scheduled for delivery by 2032 and will increase the size of its owned, managed and committed fleet to 1,037 aircraft, pushing it ahead of rival SMBC Aviation Capital as the world's second largest aircraft leasing firm. Lessors have benefited from a rebound in travel demand following COVID-19 lockdowns and sharp increases in lease rates because of a lack of aircraft as manufacturers struggle to increase production. Avolon also purchased 20 Airbus A330neos planes in September and 40 737 MAXs from Boeing in June. Leasing companies control more than half the world's fleet of aircraft. "Today's orders strengthen our delivery pipeline and reflect our confidence in the long-term outlook for aviation," Avolon CEO Andy Cronin said.<br/>