$11bn deal: Dublin lessor Avolon or­ders 100 Air­bus jets

Irish Independent - - Business - John Mul­li­gan

THE Dublin-based air­craft lessor Avolon has placed an or­der for 100 Air­bus jets with an $11.5bn (€10.1bn) list price.

The or­der is Avolon’s largest ever with the Euro­pean air­craft maker, and grows the Ir­ish-founded lessor’s owned, man­aged and on-or­der fleet to just un­der 1,000 jets, worth more than $50bn (€44bn).

The Avolon or­der in­cludes 75 A320­neo air­craft and 25 A321­neo jets. They’ll be de­liv­ered be­tween 2023 and 2026.

Dómh­nal Slat­tery, Avolon’s co-founder and chief ex­ec­u­tive, said the or­der re­flects the group’s am­bi­tion to be the world’s big­gest air­craft lessor, in a sec­tor where Ge­cas and AerCap tus­sle for top spot. Avolon is the third-big­gest lessor.

“We are lock­ing in growth well into the next decade and build­ing on our ex­ist­ing or­der book of ex­clu­sively new tech­nol­ogy air­craft,” he said. “The scale of the or­der re­flects the longterm com­mit­ment and strate­gic per­spec­tive of our share­hold­ers.”

He added that Avolon con­tin­ues to see “ro­bust de­mand” for the sin­gle-aisle A320­neo fam­ily air­craft.

Last month, Avolon placed 15 A320­neo air­craft with Vis­tara, an In­dian car­rier that is a joint ven­ture be­tween Tata Sons and Sin­ga­pore Air­lines. De­liv­er­ies will start next sum­mer.

Avolon is part of the Bo­hai Group, which is in turn ma­jor­ity-owned by Chi­nese conglomerate HNA.

A 30pc stake in Avolon was re­cently sold by HNA to Dublin-based lessor Orix Avi­a­tion. Orix paid $2.2bn (€1.9bn) for the stake.

It was re­ported last week that HNA – which is try­ing to cut its huge debt bur­den – has put bil­lions of dol­lars worth of ad­di­tional as­sets up for sale, in­clud­ing the re­main­ing 70pc stake in Avolon.

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