Dublin, January 21st 2019 – SMBC Aviation Capital has today announced an agreement for the purchase of 65 aircraft from Airbus. This transaction demonstrates the company’s commitment to further growth and represents one of SMBC Aviation Capital’s largest single transactions with the European manufacturer.
The order includes 50 A320neo and 15 A321neo aircraft and at today’s list price is valued at over US$7.4 billion.
Today’s announcement demonstrates the company’s commitment to its strategy of purchasing the latest, most fuel efficient single-aisle aircraft to meet its airline and investor customers specific requirements for growth and long term fleet planning.
The order ensures SMBC Aviation Capital is well positioned with A320neo deliveries well into the next decade and brings SMBC Aviation Capital’s total number of owned, managed and committed aircraft to over 720. In total, SMBC Aviation Capital has ordered 277 A320 family aircraft directly from Airbus.
Mr Peter Barrett, CEO, SMBC Aviation Capital said: “We are pleased to conclude this transaction which demonstrates our commitment to the future growth and development of this business.
Demand for the latest technology aircraft has been strong both from our existing and new customers hence our decision to make this order. In the current environment, airlines are seeking more fuel efficient aircraft. The make-up of our order book positions us well for the future to deliver on those needs. We have a strong relationship with Airbus and we look forward to working with them to continue to deliver for our customers.”
Head of Commercial Sales at Airbus, Christian Scherer added, “As one of the world’s leading aircraft lessors, SMBC Aviation Capital’s repeat order demonstrates its financial astuteness in making wise investments in the A320neo Family. In 2018, the direct leasing market represented over 30 per cent of our 800 worldwide deliveries – as much as Europe and the Americas combined,”
The deal adds to a six A320neo aircraft order placed at the end of March 2018, bringing the total number of aircraft ordered with Airbus in 2018 to 71. This agreement also includes a conversion, from a pre-existing order, of 15 A320neo to 15 A321neo, taking SMBC Aviation Capital’s total for the aircraft type to 30.