Double deal for Avolon

Ireland-headquartered lessor Avolon is to significantly expand its narrowbody portfolio after placing an order for 40 Boeing 737 MAXs.

Speaking at the Paris Air Show, Avolon CEO Andy Cronin commented: “Today's announcement reaffirms our long-standing partnership with Boeing and our support for their 737 MAX program. We are confident in the long-term demand from our customers for the 737 MAX, and this order extends our delivery pipeline out to 2030. The transitioning of the global fleet to more fuel-efficient new-technology aircraft is a priority for our industry, and we are looking to play a leading role by supporting airlines achieving their sustainability objectives."

Boeing Commercial Airplanes president and CEO Stan Deal added: “This order demonstrates the popularity of the 737-8 among the leasing community and the demand they are seeing from their customers for this airplane model. Avolon has a long-standing relationship with the 737 MAX program and took delivery of the 1,000th 737 MAX last year. We look forward to building on this strong relationship with a key leasing partner as they grow their Boeing portfolio of airplanes.”

The order was previously attributed to an undisclosed customer.

Avolon followed this with news it had secured the sale and leaseback of ten Embraer 195-E2s with Porter Airlines. The deal, valued at $841 million at list prices, will support the Canadian regional carrier’s network expansion domestically and across the US.

The first four aircraft are scheduled for delivery in 2023, with the remainder following next year

Avalon president and chief commercial officer Paul Geaney remarked: “Porter is renowned for its customer experience and has exciting plans for the expansion of its E2 fleet. We are delighted to welcome them as a customer and look forward to partnering on their future growth. Our decision to add the E2 to our portfolio is supported by its growing operator base, with the transaction further diversifying our portfolio, whilst offering attractive returns.  The E2 is a modern fuel-efficient aircraft that offers excellent operating performance, competing effectively with other smaller narrowbody platforms.”

Jeffrey Brown, CVP and CFO at Porter Airlines added: “The E2 is an incredible addition to Porter’s fleet, offering best-in-class seat cost economics and providing an ideal platform to deliver the truly differentiated in-flight economy passenger experience that Porter is known for. This means treating everyone with care and offering complimentary amenities like WiFi, and beer and wine served in glassware throughout the cabin. We are excited to partner with Avolon and value their reputation and expertise in aircraft leasing, which makes them an ideal new partner.”