Aircraft lessor Avolon cancel order for 75 Boeing 737 MAXs

Avolon, the Dublin-based lessor has announced that it is revising its orders to reflect current market trends. It has decided to cancel its order for 75 unplaced Boeing 737 MAX aircraft and reschedule deliveries of its 16 other aircraft to start from 2024 or later.

The order was originally placed in November 2017m with Avolon signing an initial order for 20 MAXs in 2012, only three of which have been delivered, which leaves the lessor with 17 of the type still to be delivered. Avolon stated that it was still committed to the programme and may review its future orders an appropriate time.

“As we have produced fewer MAX aeroplanes than planned, we have implemented these adjustments to regain flexibility in managing more than 4,300 unfilled 737 MAX orders,’ Boeing stated. “This is also the right step to align the realities of the marketplace as we balance supply and demand and protect the 737 MAX’s underlying values, especially in the leasing sector.”

Avolon also announced it has cancelled its order of four Airbus A330-900s. The lessor had initially bought 13 of the type, four of which had been delivered. The nine A320neo types have now been revised from being delivered this year and next, to 2027.

“We are currently facing the most challenging period in the history of commercial aviation,” CEO Domhnal Slattery said. “The global fleet has been effectively grounded as countries work hard to slow the spread of COVID-19.” He added, “while we have never seen a crisis of this nature, we remain confident that the industry will recover once the impact of COVID-19 recedes.”