PR: Avolon, a leading global aviation finance company, has placed a firm order for 110 Airbus aircraft, comprising 35 A330-900 and 75 A320neo Family aircraft. This incremental order takes Avolon’s total for the A330-900 to 114 aircraft and the A320 Family to some 650.
“We continue to see strong demand for new aircraft, and this order further strengthens our long-term delivery pipeline. This positions us to support our airline customers’ fleet growth and replacement requirements well into the next decade. We expect demand for both the A330neo and A320neo to remain strong given the long-term growth trajectory of the aviation sector, and we are delighted to further expand our longstanding partnership with Airbus through this agreement,” said Andy Cronin, Avolon CEO.
“This is a major order for both the A330neo and the A320neo Family and we thank Avolon for its repeated endorsement of our products,” said Benoît de Saint-Exupéry, Airbus EVP Sales of the Commercial Aircraft business. “With this acquisition, Avolon confirms its position as the leading lessor for the A330-900, having purchased 114 of the type from Airbus. It is also another demonstration of the strong demand for the A330neo and A320neo from the lessor community, who clearly value the broad market appeal and flexibility these two products offer in the market space from domestic to regional to long haul routes.”
Powered by the latest generation Rolls-Royce Trent 7000 engines, the A330neo is designed to fly up to 8,100 nautical miles / 15,000 kilometers non-stop and reduces fuel burn, CO? emissions and operating cost by 25% compared to previous generation competitor aircraft. The A330neo unique Airspace cabin offers passengers and crews the latest modern in-flight products for a comfortable flying experience.
The A320 Family is the world’s most popular single-aisle aircraft, having won more than 20,400 orders globally. The Family includes the largest member, the A321neo, offering unparalleled range and performance. The Family offers at least 20% fuel savings and CO? reduction compared to previous generation single-aisle aircraft, while maximising passenger comfort with one of the widest single-aisle cabins in the sky.
Notes:
The A330neo is arguably Airbus’ most underappreciated model. Like its forebear, it is an exceptionally flexible aircraft. Except the A330neo is more of everything compared to the A330ceo. It can do medium- and long-haul flights efficiently. Boeing does not have an equivalent. The 787-8 and 787-9 can meet and beat the A330-900 on range and fuel burn. But for flights under 5,000 miles, the 787s lose some of that advantage. The A330ceo ended the 767 and even competed effectively against the 777-200ER. It even eclipsed the A340. In short, the A330 is highly effective, and this explains its popularity.
The A330neo’s slow order rate is driven primarily by the A330ceo’s success. The A330neo had to wait for the A330ceo to start retiring. Now that the A330ceo has a future as a converted freighter, retirements may accelerate. Avolon is driving this by running a conversion program with IAI.
So Avolon ordering a batch of A330neo makes sense. Besides, after AirAsia’s disappointing A330neo track record, Airbus likely had some attractive slots. A win for both OEM and lessor.
Regarding the A320 family order, not naming a model reflects flexibility. But the bet is on the A321, not the A320. Looking at the skyline, taking slots isn’t a hard bet. Remember how big the Airbus A320ceo backlog used to be? Once the A320neo was announced, conversions were rapid. Many A320ceo orders magically became A321neo orders. Looking at you, JetBlue. Once it’s in the skyline, Avolon can convert to whatever Airbus does next. Really, close to zero risk.
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