The world’s commercial aircraft manufacturers enjoyed another lucrative day at the Paris Air Show on Monday, led by more big orders for Boeing and Airbus and an unexpectedly massive deal for 50 Bombardier Q400 turboprops from India’s Spicejet.
For Boeing, an MOU signed by Avolon for 75 Max 8s headlined another long list of business at the show Monday. Scheduled for first delivery in 2021, the latest tranche of 737s for Avolon brings the lessors’ owned, managed and committed fleet increase to 925 aircraft. With purchase rights on another 50 Max narrowbodies, Avolon’s commitment the latest iteration of the 737 totals more than 130 airplanes.
“This order represents the single largest order that Avolon has placed with Boeing to date and underlines the scale of our ambition and the strength of our business,” said Avolon CEO Dómhnal Slattery. “In our industry we have to be thinking five and 10 years ahead. What’s happening tomorrow or the day after is not that relevant to a global aircraft leasing company.”
Appearing Monday at a Paris press briefing alongside Boeing CEO Kevin McAllister, Slattery stressed his company’s “deep understanding” of the Asian market, particularly in its home market of China. He also congratulated Boeing on the launch of the Max 10 on Sunday, adding that Avolon will take a “hard look” at the airplane for possible future acquisition.
United Airlines evidently took a hard look of its own, and what proved the largest Max 10 commitment by the second day of the show actually represented a conversion of a previous order from United Airlines for 100 smaller Max 9s. United expects to begin taking delivery of the Max 10 in late 2020.
More launch orders for Max 10s came from China Aircraft Leasing Group (CALC), whose new commitment for 50 Max narrowbodies included 15 of the latest and largest Max. The order marks CALC’s first direct purchase from Boeing, carrying a value of $5.8 billion at list prices.
Yet another lessor joined the rush to order Max 10s—Aviation Capital Group (ACG)—placed an order for 20 of the narrowbodies worth $2.49 billion at list prices. In addition to the Max 10s, ACG holds orders for a mix of 60 Max 8s and Max 9s.
China’s Okay Airways almost immediately followed the ACG deal with an order for eight Max 10s and seven Max 8s. Boeing values that contract at $1.8 billion based on list prices. The airline also signed an MOU covering five 787-9 Dreamliners as part of its long-term fleet strategy and expansion plans. Meanwhile, Boeing and Ryanair finalized an order for 10 more 737 Max jets valued at more than $1.1 billion at current list prices. The Irish low-cost carrier now holds 110 unfilled orders with 100 options for 197-seat versions of the 737 Max 8, as well as 65 Next-Generation 737-800s.
More Dreamliner business came from Azerbaijan Airlines, which announced a commitment for four 787-8s worth $918 million at list prices, while Boeing revealed the identity of a previously unidentified customer for six Max-family jets from Romania’s Blue Air.
Boeing wrapped up its order rush with a deal involving ten 737 Max 8s for Tokyo-based Japan Investment Adviser Company. Boeing values the commitment at $1.12 billion based on current list prices.
Airbus, meanwhile, collected further significant business for its A320neo family, as Dublin-based CDB Aviation Lease Finance signed an MOU for 45 aircraft, consisting of 30 A320neos and 15 A321neos. Separately, 15 A320neo positions from CDB Aviation’s previous order will convert to A321neo aircraft.
Minutes later, Viva Air, the Latin America low cost carrier group owned by Irelandia Aviation, signed an MOU with Airbus covering 50 A320-family airplanes, including 35 A320neos and 15 A320ceo. The agreement paves the way for the group’s airlines VivaColombia and Viva Air Peru to base its fleet renewal and network growth on the A320 Family.
Viva Air recently launched Viva Air Peru, the sister airline of VivaColombia. Medellin-based VivaColombia operates nine A320 aircraft and Lima-based Viva Air Peru currently operates two, all with a capacity of 180 seats.
Parent company Irelandia has launched six low cost carriers around the world, namely Allegiant, Ryanair, Tigerair, VivaAerobus, VivaColombia and, most recently, Viva Air Peru. Combined, the airlines maintain a fleet of more than 420 airplanes.
A U.S. airline added to the bounty for Airbus Monday, as Delta Air Lines placed an order for 10 A320neos as an add-on to a separate order for 30 A321s placed just last month. The airline took delivery of its first A321 in March of last year and has ordered a total of 122 A321s, each powered by CFM56 engines.
Many of Delta’s A321s come from the Airbus U.S. manufacturing plant in Mobile, Alabama. The airline received its first U.S.-manufactured A321 last year. By the end of 2017, the Airbus facility in Mobile plans to produce four aircraft per month, most going to Airbus’s U.S. customers.
Airbus closed its day with a big widebody order for 10 A350-900s from Ethiopian Airlines. Ethiopian became the first African airline to operate the A350 last June, when it took the first of 12 on order at a time. It now operates a fleet of four, two of which it leases.
In the regional airliner segment, Brazil’s Embraer took several orders for its new E2 family of E-Jets, led by firm orders for 10 E195-E2s from two unidentified customers and purchase rights on another 10. Another agreement, from Japan’s Fuji Dream Airlines, yielded a firm order for another three E175s and purchase rights on another three. Embraer collected a firm for two more E-Jets from Belavia of Belarus—one E175 and one E195—due for delivery in 2018. Finally, KLM Cityhopper placed a firm order for two more E190s, both of which will join the airline’s existing fleet of 30 E190s and nine E175s next year.
While Embraer’s orders significantly widened its customer base, Canada’s Bombardier potentially more than matched the value of those deals with a single letter of intent covering up to fifty 86-seat Q400s turboprops from India’s Spicejet. The deal includes 25 of the big turboprops and purchase rights on another 25. The order value totals some $1.7 billion based on the aircraft’s list price and schedules call for deliveries to start in 2018. SpiceJet has taken delivery of 15 Q400s since 2010. While the airline currently operates 20 Q400s, they operate in a 78-seat configuration. Both Singh and Bombardier president Fred Cromer suggested the latest tranche of airplanes could carry as many as 90 passengers with the addition of another seat rows.
Finally, rival turboprop maker ATR joined the sales bonanza late in the day, when Air Senegal SA, the new Senegalese national airline, placed a firm order of two ATR 72-600s. The two turboprops will constitute the initial fleet of the airline and schedules call for delivery this November. The new Senagalese flag carrier plans to hold an inauguration ceremony won December 7, 2017, in conjunction with the inauguration of the new Blaise Diagne International Airport in Diass, located some 50 kilometers from Dakar.