Avolon’s firm backlog reaches 1,037 after massive Boeing, Airbus orders 

Avolon has completed two massive orders from Airbus and Boeing, with the lessor purchasing 100 Airbus A321neo and 40 Boeing 737 MAX. The latest order expanded the lessor’s 737 MAX order book to over 110 aircraft, split between the 737 8 and 737 10 variants. In total, Avolon now has a firm backlog of 1,037 aircraft, compared to 897 that it had at the end of September 2023.

Ordering A321neos and 737 MAXs

Andy Cronin, the chief executive officer of Avolon, emphasised that the order reflects the lessor’s belief in a positive outlook for the aviation industry. The purchase, if approved, would allow Avolon to meet airlines’ needs to take delivery of 737 MAX aircraft out to 2030, with Cronin noting that the “availability of aircraft is very limited.”

“We have now committed to 80 new, fuel-efficient 737 MAX aeroplanes this year, supporting the transformation of our fleet to lower emissions airplanes.”

The CEO also highlighted that Avolon took delivery and leased the 1,000th Boeing 737 MAX aircraft and the first-ever aircraft of the type, which Malindo Air, now known as Batik Air Malaysia, took delivery of in May 2017. The aircraft, registered as 9M-LRC, is still being flown by the airline.

Brad McMullen, the senior vice president of commercial sales and marketing at Boeing, said that the manufacturer is ready to support lessors that are looking to grow their narrowbody jet fleets with long-term travel demand expected to remain strong. “Avolon continues to be a significant and much valued customer for the 737 program,” McMullen added, noting that this was the second 737 MAX order from the lessor during 2023.

The lessor’s previous order was finalised during the Paris Air Show in June 2023, when it purchased 40 Boeing 737 MAX aircraft. At the time, Cronin also highlighted that the order would allow the company to deliver the type to airlines that want to expand their fleets up to 2030. During the same trade event, the lessor also purchased 20 Airbus A330neo aircraft.

Transforming to new technology aircraft

Reflecting on the deals Avolon has made throughout 2023, Cronin said that the 200 newly ordered aircraft would support the lessor’s fleet transformation to a more fuel-efficient and lower-emission fleet. “The scale of our order book reflects the strength of Avolon’s balance sheet, our proven ability to execute swiftly, and the longstanding relationships we have with both Airbus and Boeing,” the lessor’s CEO added.

Meanwhile, Christian Scherer, the chief commercial officer (CCO) and head of international at Airbus, stated that the order for 100 A321neos has allowed Avolon to secure delivery slots in the long term with the right aircraft for its airline customers. “This way, Avolon and its customers can benefit from the strong wave of growth and replacements being observed globally across all markets,” Scherer added.

According to Boeing Orders & Deliveries filings, the manufacturer has booked 677 orders for the 737 MAX as of October 31, 2023. Avolon and other lessors, such as Aviation Capital Group, BOC Aviation, and SMBC Aviation Capital, have ordered 81 737 MAX aircraft so far during the year. In comparison, Airbus’ filings showed that it had sold 1,136 Airbus A320neo aircraft as of November 30, 2023, which includes the record-breaking IndiGo order for 500 A320neo family aircraft, split between the A320neo and A321neo.

Selling more aircraft

Between January and October 2023, Boeing booked 677 orders for the 737 MAX. During the same period last year, the manufacturer sold 530 aircraft, adding 167 units to its backlog throughout the last two months of 2022. This included United Airlines’ large order when the carrier finalised a massive order for Boeing 737 MAX and 787 aircraft in December 2022. At the time, the United States (US)-based airline purchased 100 Boeing 787s, including 100 options, exercised option rights for 44 737 MAXs, and added 56 firm orders for Boeing’s narrowbody jet.

In contrast, Airbus has blown past its 2022 A320neo family order numbers. While it finished the previous year with 851 net orders for its best-selling narrowbody family, up to November 2023 it already had 1,136 net orders for the A320neo family, primarily driven by net orders for the A321neo (763). Net orders for the A320neo were 372 at the end of last month.