Leasing Groups Buy More of Boeing's Max
AerCap led off Boeing’s Paris Air Show business on June 16 with an order for 100 737 Max 8s.

Boeing fulfilled a long-standing ambition to add Irish leasing company AerCap to its 737 Max customer list here yesterday with a firm order for 100 Max 8s worth some $10.7 billion at list prices. It was the biggest order in a stack of new narrowbody business announced by the U.S. airframer on the second day of the Paris Air Show. Including all options, and based on list prices, the deals are valued at just over $20 billion.


Calling for first deliveries in 2019, the latest contract for Max 8s represents something of a coup for Boeing, which has long coveted AerCap’s business in the extremely active market for the latest generation of narrowbodies. Its aircraft will be powered by CFM Leap-1B engines.


“This has been a deal that has been long in the making,” said Boeing Commercial Airplanes CEO Ray Conner during a morning press conference. “It’s something we wanted to get for quite some time and we were able to do it over the course of the last three months.”


While addressing questions about the prospect of the world’s two major manufacturers each producing as many as 60 narrowbodies per month, AerCap CEO Aengus Kelly expressed satisfaction with the airframers’ current plans to incrementally jump to just over 50, but took a “wait and see” posture about the prospect of any further hikes. “Obviously now that we have the airplane, Ray, we’d like to you to pull back a little bit,” Kelly joked.


China’s Minsheng Financial Leasing signed a memorandum of understanding, worth roughly $3 billion, to buy a mix of thirty 737 Next Generation and Max jets. The company, which is better known in the business aviation sector, entered the commercial airliner market in 2013 and now leases 30 airliners to 10 different operators around the world. The aircraft will be powered by a mix of CFM56-7B and Leap-1B turbofans.


Also from China, Ruili Airlines announced a commitment for thirty 737 Maxs with the financial support of Avic International Leasing. The $3.2 billion is subject to approval by the Chinese government. The carrier already operates a fleet of five 737s, and wants to have 26 aircraft by 2020.


SMBC Aviation Capital announced an order for ten 737 Max 8s, worth around $1.1 billion. “Last year we placed the largest single order of 737 Maxs by a lessor and we are pleased to be adding further to that tally today,” said Peter Barrett, the Irish company’s CEO. The aircraft will be powered by CFM’s Leap-1B engines.


Indonesia’s Sriwijaya Air placed an order for a pair of 737-900ERs, plus a letter of intent covering options for another 20. The deal, worth up to $2.2 billion, marks the first time the 737 operator has purchased new aircraft. They will be powered by CFM56-7B engines.


Finally, Day 2 ended with Korean Air signing a contract outlining an intent to purchase 30 Boeing 737 Max jets and two 777-300ERs. The deal also reserves options on another 20 of the new narrowbodies, increasing its potential value to $3.9 billion.