Business Irish

Monday 14 October 2019

$11bn deal: Dublin lessor Avolon orders 100 Airbus jets

‘Locking in growth’: Incoming Airbus CEO Guillaume Faury and Avolon CEO Dómhnal Slattery
‘Locking in growth’: Incoming Airbus CEO Guillaume Faury and Avolon CEO Dómhnal Slattery
John Mulligan

John Mulligan

THE Dublin-based aircraft lessor Avolon has placed an order for 100 Airbus jets with an $11.5bn (€10.1bn) list price.

The order is Avolon's largest ever with the European aircraft maker, and grows the Irish-founded lessor's owned, managed and on-order fleet to just under 1,000 jets, worth more than $50bn (€44bn).

The Avolon order includes 75 A320neo aircraft and 25 A321neo jets. They'll be delivered between 2023 and 2026.

Dómhnal Slattery, Avolon's co-founder and chief executive, said the order reflects the group's ambition to be the world's biggest aircraft lessor, in a sector where Gecas and AerCap tussle for top spot. Avolon is the third-biggest lessor.

"We are locking in growth well into the next decade and building on our existing order book of exclusively new technology aircraft," he said. "The scale of the order reflects the long-term commitment and strategic perspective of our shareholders."

He added that Avolon continues to see "robust demand" for the single-aisle A320neo family aircraft.

Last month, Avolon placed 15 A320neo aircraft with Vistara, an Indian carrier that is a joint venture between Tata Sons and Singapore Airlines. Deliveries will start next summer.

Avolon is part of the Bohai Group, which is in turn majority-owned by Chinese conglomerate HNA.

A 30pc stake in Avolon was recently sold by HNA to Dublin-based lessor Orix Aviation. Orix paid $2.2bn (€1.9bn) for the stake.

It was reported last week that HNA - which is trying to cut its huge debt burden - has put billions of dollars worth of additional assets up for sale, including the remaining 70pc stake in Avolon.

Irish Independent

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