Avolon places major purchase order for aircraft to enhance supply capacity

By the Editorial Team · Wednesday, October 14, 2026

Avolon has signed a major agreement to purchase 250 aircraft from Airbus and Boeing, with options for 100 more, increasing its firm order book to 749 jets and securing delivery through 2035-2036. This deal is a strategic move to lock in production capacity amid ongoing supply shortages, positioning Avolon for long-term growth despite current airline market challenges.

Avolon, a leading aircraft leasing company based in Dublin and majority-owned by Shenzhen-listed Bohai Leasing, has announced a significant new purchase agreement to acquire 250 aircraft from Airbus and Boeing, with options to buy an additional 100 jets. This order, one of the largest by a leasing firm in recent years, includes 140 Boeing 737 MAX aircraft, 75 Airbus A320neo-family jets, and 35 Airbus A330neos. Deliveries are scheduled to continue through 2035 for Airbus planes and 2036 for Boeing models.

The total value of the transaction could reach up to $63.44 billion at list prices, though actual costs are expected to be lower due to negotiated discounts. The deal awaits approval from Bohai Leasing’s shareholders. Despite a recent slowdown in global air passenger traffic—down 0.8% year-on-year in August according to the International Air Transport Association—the order reflects broader concerns about long-term aircraft supply rather than immediate market demand.

Industry analysts point to ongoing production challenges, including engine shortages, spare-parts bottlenecks, and maintenance issues, which limit aircraft availability. Ben Schmidt, senior director at Fitch Ratings, characterized the order as primarily a strategic move by Avolon to secure future production capacity amid a persistent shortage of new aircraft, particularly in the narrowbody segment. Narrowbody jets make up 86% of Avolon’s firm commitments, aligning closely with industry forecasts that anticipate strong demand for this category over the coming decades.

At the end of September, Avolon’s fleet comprised 1,092 aircraft, including 499 already on order and serving 138 airlines across 62 countries. This new agreement would increase the firm order book to 749 aircraft, enhancing Avolon’s position as a major lessor in the global aerospace market. Schmidt noted that large, diversified lessors like Avolon typically have advantages in securing delivery slots, arranging financing, and managing fleet transitions compared to smaller competitors.

However, the benefits of such a substantial order are expected to materialize gradually. Current industry dynamics are driven by immediate aircraft availability rather than those scheduled for delivery more than a decade from now. Schmidt indicated that the new deal is unlikely to have an immediate impact on lease rates or competition but could bolster Avolon’s market standing over time.

While Avolon continues to expand its portfolio—it sold 29 aircraft and arranged leases for 28 new-technology jets in the third quarter—it faces typical long-term uncertainties. Aircraft orders placed years in advance are subject to shifts in airline demand, profitability, and financing conditions. Funding requirements will also increase as deliveries progress, amid unpredictable interest rate and capital market environments. Nonetheless, Avolon’s access to capital markets and operational diversity are viewed as factors that help mitigate these risks moving forward.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.