Avolon orders 250 jets in one day: 140 Boeing 737 MAX and 110 Airbus, including 35 A330neos

Avolon, one of the world's largest aircraft lessors, has ordered 250 new jets in a single day. The Dublin-based company signed for 140 Boeing 737 MAX jets and 110 Airbus aircraft, made up of 75 from the A320neo family and 35 A330-900 widebodies. Both deals were announced on October 9.

Avolon called them its largest orders ever with either plane maker. It also holds options for 100 more Airbus aircraft, KSL reported. The order still needs a sign-off from Bohai Leasing, the Chinese company that owns 70% of Avolon. Avolon expects that approval before the end of October.

Why a leasing company matters to you

You will never see Avolon's name on a plane. Lessors buy jets from Boeing and Airbus, then rent them to airlines, often for 10 or 12 years at a time. The airline paints the plane, fits its own seats and flies it as if it owned it.

That model is a big part of how airlines grow. Lessors own about half the world's airline fleet, according to KSL. When an airline wants new jets quickly, it often cannot wait in line at the factory. Boeing and Airbus are both sold out for years. A lessor that placed its order long ago can fill that gap.

So this order is not about one airline. It is a bet by Avolon that airlines around the world will keep wanting new planes through the 2030s. Avolon says 89% of the deliveries due to it over the next 24 months are already placed with airlines, according to Air Data News.

"We continue to see strong demand for new-technology aircraft," Avolon CEO Andy Cronin said.

The Boeing half

The 140 737 MAX jets are the bigger piece. Avolon has not said how many will be 737-8s and how many will be the larger 737-10. It has not given a delivery schedule either. Its earlier MAX orders included both models.

The timing helps Boeing. The 737-10 is still waiting for its safety certificate, and a software problem pushed Alaska's first delivery past its September target. A large new order from a lessor shows that buyers still trust the program.

The Airbus half

On the Airbus side, the 75 A320neo-family jets are single-aisle planes for short and medium routes. Airbus did not say how many will be the larger A321neo.

The 35 A330-900s are the more unusual part. The A330neo is a twin-aisle jet that often flies routes of six to 12 hours. Avolon now has 114 of them on order, which Airbus says makes it the biggest lessor of the type. "This is a major order for both the A330neo and the A320neo Family," said Benoît de Saint-Exupéry, Airbus's head of commercial sales, in Airbus's announcement.

For travelers, the A330neo is a mixed bag. The plane is quieter and more fuel efficient than the older A330. But the seats inside are up to each airline. Some carriers fit lie-flat business seats with aisle access for everyone. Others put in older recliner seats on routes to holiday spots. A leased A330neo can end up with either.

What it means for the order books

With these deals, Avolon will have 749 aircraft on order, on top of the 561 it already owns. Its owned, managed and ordered fleet would rise to 1,342 planes.

Both plane makers needed the boost. Airbus booked only 17 gross orders in September, and its backlog fell by 58 jets to 9,310, Air Data News reported. For Boeing, the order arrives ahead of its third-quarter results on October 27.

What we don't know yet

Avolon has not said which airlines will fly these jets, when they will arrive, or how the MAX order splits between models. Those answers will come as Avolon signs leases. When you board a new 737 MAX or A330neo in the 2030s, there is a fair chance Avolon owns it, even if you never see its name.

For the rest of this month's deals, see our roundup of October's Boeing and Airbus orders.