Avolon, the aircraft leasing company based in Dublin, Ireland, is set to order 40 Boeing 737 MAX aircraft for delivery between 2027 and 2030.
This order follows the one thousandth 737 MAX aircraft being delivered to the leasing company earlier this year, allowing its fleet to rise to 870 owned and managed aircraft once the order is finalised.
The 737 MAX is the fourth generation of Boeing 737, a narrow-body airliner and extends the 737-family flight range with the capability to fly more than 3,500 nautical miles.
Irish-based company Avolon committed to the order with a deal worth over $4bn at the current list price, a deal set to boost Boeing, which is facing ongoing supply chain issues.
According to the American-based manufacturer, the 737 MAX aircraft can reduce fuel use and emissions by 20% whilst providing greater flexibility for customers across its network.
Avolon CEO Andy Cronin said: “This commitment with Boeing underlines our confidence in the positive momentum in the aviation market and increases our portfolio of young, modern, fuel-efficient aircraft.
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“This commitment will also support our airline customers who are looking to plan beyond the robust post-Covid-19 traffic recovery and prepare for future growth while also reducing their carbon emissions.”
According to Avolon’s 2023 first quarter results, the company ‘owned and managed fleet of 578 aircraft at quarter end, with total orders and commitments for 252 fuel-efficient, new technology aircraft’.
The Avolon CEO highlighted how they took advantage of opportunities in the first quarter of 2023.
“Avolon benefitted from rising lease rates during the quarter as global passenger traffic continued to grow and the reopening of the Chinese market provided an important catalyst for increased travel in the region,” said CEO Andy Cronin.
The manufacturer has implemented a Manoeuvring Characteristics Augmentation System on the 737 MAX family to enhance pitch characteristics and emulate the former 737 aircraft.
According to the first quarter reports from Boeing, the company still aims to deliver 400-450 737 aircraft in 2023 despite supply chain constraints involving the manufacturing process of the 737 MAX.
“We delivered a solid first quarter and are focused on driving stability for our customers,” said Calhoun.