Posted on: 21 January 2019 by Kimberley Young
SMBC Aviation Capital has added to its Airbus orderbook with an agreement for 65 A320neo Family aircraft, in a deal valued at over US$7.4 billion at current list prices.
The order includes 50 A320neo and 15 A321neo aircraft and represents one of the company’s largest single transactions with the manufacturer.
The agreement also includes a conversion of 15 A320neo aircraft from a pre-existing order to 15 A321neo, taking SMBC Aviation Capital’s total for the aircraft type to 30.
“Demand for the latest technology aircraft has been strong both from our existing and new customers hence our decision to make this order,” commented Peter Barrett, CEO, SMBC Aviation Capital. “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.”
The deal adds to an earlier agreement made in March for six A320neo aircraft, and brings the total number of A320neo Family aircraft ordered in 2018 to 71.
SMBC Aviation Capital said the order ensures it is “well positioned” with A320neo deliveries into the next decade and brings its 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.
Head of Commercial Sales at Airbus, Christian Scherer called it a “wise investment” in the A320neo family, adding: “In 2018, the direct leasing market represented over 30 per cent of our 800 worldwide deliveries – as much as Europe and the Americas combined.”