Tuesday 20 August 2019

Avolon agrees €4bn deal for 75 Boeing MAX 8 and 10 jets

Domhnal Slattery, chief executive of Avolon
Domhnal Slattery, chief executive of Avolon

Anne Marie Roantree

Dublin-based Avolon has firmed up an order for 75 Boeing airplanes and said it may order 20 more, in a deal probably worth more than $4bn (€3.4bn).

Domhnal Slattery-led Avolon agreed to buy 55 Boeing 737 MAX 8 aircraft and 20 of the higher-capacity Boeing 737 MAX 10, Chinese parent Bohai said in a filing.

It may order an additional 20 of the main 737 MAX 8 version, it added. Based on published prices, the confirmed part of the deal would be worth $8.7bn (€7.4bn) at list values, though analysts say buyers typically get discounts of at least 50pc for significant orders of such models.

Including the possible extra purchase of 20 jets, the total deal would be worth $11bn at list prices, Bohai said. The announcement broadly confirms a memorandum of understanding signed by Avolon at the Paris Airshow in June for 75 Boeing 737 MAX 8 aircraft. Slattery said at the time that Avolon was considering Boeing's 737 MAX 10.

Bohai, part of aviation-to-shipping conglomerate HNA Group, said Avolon expected to take delivery of the aircraft between 2021 and 2024.

Avolon was sold to Bohai Capital in 2015. Bohai and other state-backed Chinese firms are expanding in the aircraft financing and leasing business as customer airlines open routes at home and abroad. (Reuters)

Irish Independent

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