Boeing secures $7.2-bn deal with Air Lease Corp

The world's largest aircraft manufacturer Boeing Inc secured a $7.2-billion deal to supply 75 advanced Boeing 737 Max aircraft to Air Lease Corporation (ALC) at the Farnborough air show in UK yesterday.
 
The US leasing company's order includes 60 737 Max 8 and 15 737 Max 9 airplanes with reconfirmation rights for additional 25 737 Maxs. The order is the first 737 Max order by a leasing company, Boeing said in a statement.
 
Los Angeles, California-based ALC is an aircraft leasing company that has airline customers worldwide. The company is engaged in purchasing commercial aircraft and leasing them to its airline partners through customised aircraft leasing and financing.
 
ALC's chairman Steven Udvar-Hazy said, ''The 737 Max is an excellent addition to our portfolio and the ideal complement to our growing fleet of Next-Generation 737-800s. The 737 Max represents a step-change improvement that our airline clients need to compete in the future."
 
Boeing's newest family of aircraft 737 Max incorporates the latest-technology LEAP-1B engines developed by CFM International to deliver highest efficiency, reliability and passenger comfort in the single-aisle market.
 
CFM International is a 50:50 joint venture between GE Aviation and French aircraft and rocket engine manufacturer, Snecma SA.

The aircraft will build on the reliability of the successful Next-Generation 737s while delivering improved fuel and cost efficiencies. Boeing claims a 13-per cent saving in fuel compared to today's most efficient single-aisle planes and an 8-per cent reduction in operating cost per seat for its 737 Max.

The 737 Max's first flight is scheduled in 2016 and deliveries to customers are expected to begin in the fourth quarter of 2017.

Boeing Commercial Airplanes president and CEO Ray Conner said: "The ALC leadership team has an excellent record of placing Boeing airplanes with airlines worldwide. They are an ideal partner to help establish the 737 Max in the leasing market."

ALC has ordered a total of 170 airplanes from Boeing including the latest 737 Max deal. Other orders include 78 Next-Generation 737-800s, five 777-300ERs and 12 787-9 Dreamliners.

Three days ago, Virgin Australia also entered into a deal with Boeing to buy 23 737 Max aircraft with options for additional four, thus becoming the first Australian airline to place an order for the latest aircraft.