Airbus nets $25bn of Farnborough plane orders

FARNBOROUGH, Tuesday

European aircraft maker Airbus won orders for its passenger planes from leasing companies worth about $25 billion at the Farnborough air show on Tuesday, far outpacing its US rival Boeing.

Airbus won memoranda of understanding for its new long-haul A330-900neo, which was launched at Farnborough on Monday, as well as a major contract from Japanese aircraft leasing company SMBC Aviation Capital.

It sealed a sale also with a Bank of China leasing company — helping to bring Airbus' total orders for the day to about $25 billion (18.5 billion euros).

Among Boeing's orders was a $3.9 billion deal to sell planes to US group Air Lease Corporation.

SIGNED AN ORDER

SMBC Aviation Capital meanwhile said it had signed an order for 115 single-aisle A320 Airbus planes costing $11.7 billion.

"This new order is the industry's largest ever single firm order by a worldwide leasing company for single-aisle aircraft," SMBC said in a statement.

"This is a landmark order for SMBC Aviation Capital and indeed for the wider aircraft leasing industry, and I am delighted to be continuing the close and long-standing relationship that our business enjoys with Airbus," said SMBC chief executive Peter Barrett.

BOC Aviation, the Singapore-based aircraft leasing subsidiary of Bank of China, announced an order for 43 A320 planes worth $4.1 billion at Farnborough.

"It's great to see one of the world's leading lessors, BOC Aviation, based in the fast growing Asian market, continuing to invest in our market leading A320 family," said Airbus president Fabrice Bregier.

RISING DEMAND

US leasing company CIT said it planned to buy 15 A330-900neo planes and five short-haul A321 jets for a combined value of $4.67 billion.

"These new aircraft will allow CIT to maintain one of the youngest and most technologically advanced fleets in the industry, while providing fuel efficient aircraft solutions to our customers through a range of sizes and categories of aircraft," said Jeff Knittel, president of CIT Transportation and International Finance.

Dublin-based leasing company Avolon said it had signed a Memorandum of Understanding for 15 A330neo aircraft worth $4.12 billion.

On Monday, Airbus had launched the eagerly awaited upgrade of its long-haul A330 passenger jet — the A330neo — to meet rising demand for cheaper, more fuel-efficient travel.

The decision to upgrade the A330 with new Rolls-Royce engines was announced on the first day of the Farnborough air show, a key biennial event in the aviation calendar held near London.

Also on Monday, US-based Air Lease Corporation announced a firm order for 60 single-aisle Airbus A321neo planes worth $7.23 billion at list prices.

CONFIRMED ORDER

On Tuesday, Boeing said that Air Lease had ordered 26 of its passenger jets in a deal worth $3.9 billion.

Air Lease is buying six long-haul 777-300ER jets and has confirmed an order for 20 single-aisle 737 MAX 8 planes.

"Additional 777-300ER and 737 MAX airplanes in our portfolio provide the economics and passenger-pleasing experiences our airline customers require," said Air Lease chief executive Steven Udvar-Hazy.

"The 777 has maintained a broad customer base and will continue to do so well into the future. The 737 MAX represents game changing efficiencies and improvements for the environment in the single-aisle market," he added.

Boeing also said that US leasing company Intrepid Aviation had ordered six 777-300ERs valued at $1.9 billion and has an option to buy four more.

Brazilian group Embraer, the world's third largest commercial plane maker, has won an order worth $2.4 billion for 50 regional jets from US airlines-owner Trans States Holdings during the Farnborough show.