Chinese leasing company Avolon has ordered 75 Boeing 737 MAX jets with an option for 20 more. As Fred Katayama reports, the deal could be worth up to $11 billion.
Big deal for Boeing. It landed an order for up to 95 Boeing planes worth $11 billion. The buyer: the Chinese-owned aircraft leasing company Avolon. Its owner, Bohai Capital, made the announcement. Avolon will buy 55 737 MAX 8 narrowbodies and may order 20 more. It's also ordering 20 of the higher capacity 737 MAX 10s. Teal Group aviation analyst Richard Aboulafia said, "Chinese capital is playing an increasing role in financing jet purchases. In the early 90s, it was peak of cycle when Japanese money really got into this business. Now, exactly the same phenomenon 20 years later with China but with much bigger numbers." The planes are expected to be delivered between 2021 and 2024. The latest order comes on the heels of China Development Bank Financial Leasing's reported order for around 100 jets from Boeing and Airbus. Sources say both jet makers have booked other orders from Chinese companies. But they haven't disclosed them for commercial reasons.