CDB Aviation has become the latest lessor to reduce its Boeing 737 MAX orderbook in light of the coronavirus crisis.
On April 20 the Dublin-based China Development Bank subsidiary said it had cut its order for 99 aircraft down to 70 and deferred near-term deliveries for 20 aircraft to 2024-2026.
“CDB Aviation is firmly invested in the strategy focused on meeting both near-term and long-term needs of the airline community,” CDB Aviation CEO Patrick Hannigan said.
“This orderbook change is beneficial to all parties involved and will strengthen our robust ability to drive continued growth momentum.”
Boeing said that “we have held ongoing discussions with CDB Aviation regarding their 737 MAX portfolio amid the impacts from the MAX grounding and the current market challenges. After these conversations, we reached an agreement to restructure their MAX orderbook. As we have done in the past months, where it has made sense, we have adjusted our orderbook to line up with the fact that we are building fewer MAX airplanes than planned.”
The OEM added that “disciplined adjustments provide us with greater flexibility to manage the 4,000 outstanding 737 orders and protect the value of the MAX in the marketplace. In light of the COVID-19 pandemic, this adjustment also helps to balance supply and demand with market realities, especially in the leasing channel.”
As part of the new agreement, CDB Aviation also converted its order for 10 737-10 to the smaller -8 model.
CDB is the third major lessor to cancel part of a MAX order following Avolon and GECAS. Avolon canceled commitments for 75 MAX jets while GECAS took 69 aircraft out of its backlog leaving it with an order for 111 aircraft. Avolon’s remaining commitment is for 34 aircraft; five have already been delivered.
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