Saudi Arabian aircraft lessor Avilease has placed an order with Boeing for 30 Boeing 737 Max 8 airliners, its first direct order with the US OEM.
The deal consists of a firm order for 20 737 Max 8s and options for a further 10 737 Max 8s and will allow AviLease to expand its portfolio and offer its customers next generation fuel efficient airliners.
“We are pleased to conclude our first direct Original Equipment Manufacturer (OEM) order, complementing our growth strategy towards being at the top of the industry,” said Edward O’Byrne, CEO of AviLease. “Building on our recently achieved investment grade ratings, this transaction proves our ability to transact across all market channels, including sale and lease-back, secondary trading, M&A and now direct OEM purchasing. These new aircraft will accelerate our growth and enable us to deliver the industry’s latest generation, fuel–efficient fleet solutions. We extend our gratitude to the Boeing team for the strong long-term relationship we have built.”
Saudi Arabia is trying to establish itself as a global aviation hub and the single-aisle order will help the country’s goal of serving 330 million passengers annually through its airports.
“We are honored to strengthen our relationship with a key Saudi Arabian commercial aviation partner and expand the global 737 MAX fleet,” said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. “The 737 MAX will diversify AviLease’s portfolio by delivering unrivalled fuel efficiency and market-leading versatility. It’s a powerful combination that will fuel AviLease’s profitable global expansion and support their airline customers’ business and sustainability goals.”
Despite some setbacks, the Boeing 737 Max range has proved popular with airlines having been built on the foundation of the previous 737 generations which operate globally.
The combination of low operating costs and a global customer base means that the Boeing 737 accounts for 30% of all airliners financed.
