Irish aircraft leasing company Avolon has ordered 40 new Boeing 737 MAX aircraft.
The two companies said the multi-billion dollar deal would give Avolon's customers more flexibility while also reducing fuel use and emissions by 20%.
"Today's announcement reaffirms our long-standing partnership with Boeing and our support for their 737 MAX program," said Andy Cronin, Chief Executive of Avolon.
"We are confident in the long-term demand from our customers for the 737 MAX, and this order extends our delivery pipeline out to 2030."
"The transitioning of the global fleet to more fuel-efficient new-technology aircraft is a priority for our industry, and we are looking to play a leading role by supporting airlines achieving their sustainability objectives."
The 737 MAX can seat up to 210 passengers and has a range of up to 3,500 nautical miles.
Avolon also announced it has signed a sale and leaseback agreement with Porter Airlines for 10 new Embraer E195-E2 aircraft, with a list price value of US$841 million.
Four of the aircraft are to be delivered in 2023, with the balance due in 2024.
It will be Avolon’s fifth leasing customer in Canda.
The announcements were made as the Paris Air Show continued where Air India was expected to finalise a whopping order for 470 planes from Airbus and Boeing, sources familiar with the matter said.
That deal, sketched out in February, was at the time the largest ever announced by number of planes.
But it was surpassed on day one of the Paris show by Indian rival IndiGo’s order for 500 Airbus narrowbody jets.
Efforts by Indian airlines to keep pace with the world's fastest-growing aviation market, serving the largest population, have sent industry records tumbling even though manufacturers are struggling to meet output goals due to supply chain snags.
But some analysts have expressed concern that airlines could be over-ordering jets in pursuit of the same passengers.
Air India's provisional deal included 250 planes from Airbus and 220 from Boeing.
The Airbus part comprised 210 A320neo narrowbodies and 40 A350 widebodies, while the Boeing deal was for 190 737 MAX, 20 787 Dreamliners and 10 mini-jumbo 777X.
Together with another 25 Airbus jets to be leased, the overall acquisition reaches 495 jets, an Airbus executive said at the time.
The companies declined to comment on Tuesday.
The buying spree adds to signs of strong global demand for civilian aircraft as travel rebounds from the pandemic and airlines look to reduce their environmental impact with more fuel-efficient new models.
Demand has been hottest for short and medium-haul narrowbody jets, but engine maker Rolls-Royce said on Tuesday the market for long-haul widebodies was also coming back strongly.
However, planemakers and their suppliers remain concerned about their ability to meet bulging order books amid rising costs, parts shortages and a scarcity of skilled workers.
Lars Wagner, CEO of MTU Aero Engines, said on Tuesday labour shortages and problems with the production of castings were the biggest strains in the engine supply chain.
