Aircraft lessor Avolon has confirmed it has canceled more orders for the Boeing MAX. In its Q2-update, the Dublin-based lessor says it has removed commitments for 27 MAX in its 2020-2022 timeframe. These are additional to the 75 aircraft canceled in Q1 announced in April.
Boeing’s order book lists 31 MAX with Avolon Aerospace Leasing Limit, all still to be delivered. Avolon Ireland has eight MAX on order, of which three have been delivered. Before the grounding, Avolon had placed eleven MAX 8 with GOL, one with Mongolian, one with Spicejet, one with Lion Air and the first MAX 8 to Malindo Air.
Avolon also updated its orders with Airbus, deleting one A330neo from the book and deferring three A320neo-family aircraft from 2021/2021 to 2022.
Its owned and managed fleet consists of 547 aircraft, with orders and commitments at 277.
Avolon’s Q2 and HY1 results have been impacted by payment deferrals from its airline customers, as they wished to reduce their costs during the difficult April-June quarter ruled by Covid-19 restrictions and groundings. Deferrals resulted in a lease revenue collection rate of 68 percent during HY1. Twelve airlines were due to restart repayments, of which seven will pay in full. Only last week, Avolon received $47 million in deferred payments.
Avolon ended the quarter with over $5 billion in total liquidity.
Today, competitor AerCap reported it has raised additional funding of $3 billion in Q2, including 2.5 billion of unsecured bonds. During the quarter, Avolon purchased two Airbus A320neo-family aircraft and placed nine narrowbodies and one widebody with airlines.