Avolon orders 140 new aircraft from Airbus and Boeing

Irish aviation lessor Avolon is betting on future air travel growth by ordering 140 new jets from leading manufacturers Airbus and Boeing

Dublin-based Avolon uses its own cash and borrowed money to buy aircraft that it leases to airlines around the world, earning revenue and profit from the rent paid.

The company said on Tuesday that it has ordered 100 A321 neo jets from European manufacturer Airbus, and 40 737 Max aircraft from US group Boeing. Manufacturers will deliver the aircraft between 2028 and 2032. The move brings to 200 the total number of new aircraft that Avolon has ordered from both manufacturers this year.

Andy Cronin, its chief executive, said the order reflected “our confidence in the long-term outlook for aviation”.

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According to a statement, the order increases the number of planes that Avolon owns, manages or has committed to buying to 1,037 from 897 at the end of September.

Both types of aircraft use less fuel than the models they will replace, cutting carbon-dioxide emissions by up to 20 per cent, Avolon noted.

The company added that the orders would allow the firm to provide airline customers with fuel-efficient aircraft into the next decade. “We have committed to direct orders for 200 new, fuel-efficient aircraft this year, supporting the transformation of our fleet to lower emissions aircraft,” said Mr Cronin.

He added that the size of Avolon’s order book reflected the strength of its balance sheet and the long-standing relationships it had with Airbus and Boeing.

Both orders are binding contracts, subject to approval by shareholders of Bohai Leasing Co, the Chinese group that owns 70 per cent of Avolon.

In September Avolon announced that it had ordered 20 Airbus A330 neo aircraft, while in June the company confirmed that it had committed to buying 40 Boeing 737 Max jets.