Business Irish

Saturday 24 February 2018

Slattery firm agrees to buy 30 jets

Peter Flanagan

Peter Flanagan

AN Irish airline leasing firm has agreed terms to buy 30 jets from Boeing in a multibillion euro deal.

Avolon, the leasing company headed by Domhnal Slattery, said it has committed to buy 10 737 'MAX 8' aircraft, five 737 MAX 9s and 10 next-generation 737-800s.

It has also secured reconfirmation rights for five 737 MAX aircraft.

Avolon said the list price for the planes was $2.3bn (€1.9bn). In practice, however, firms rarely pay full price for a bulk order such as this.

On average, a deal such as this would see the buyer pay about 60pc of the full price. That would put a price tag on the deal of a little over $1.6bn.

The agreement provides for deliveries to begin in 2015 and will swell Avolon's fleet to 105 aircraft. Mr Slattery said he was "pleased" with the deal, calling the Boeing fleet "well proven" and "hugely popular".

"Today's announcement once again reflects both the scale of our ambition and the strength of our financial backing.

"It also reflects our commitment to our customers as we enhance our fleet, grow our business and continue to deliver superior risk-adjusted returns for our shareholders," he added.

Ray Conner, Boeing Commercial Airplanes president and CEO, said the aviation giant was "proud to continue that partnership as their business grows and they build a world-class aircraft leasing platform".

The deal makes Avolon one of the main lessors of the 737 Max which is the latest iteration of the world's most successful passenger aircraft, the 737. The original model and its successors have become a staple of short-haul transport since the 1960s, with more than 7,000 airframes being built.

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