Irish lessor Avolon signed an MOU at the Paris Air Show for 20 Airbus A330neos amid a resurgence of demand for the widebody.
The company was a launch customer for the A330neo program in 2014 and has fully placed its current widebody order book. The latest orders were key to unlocking future growth in a supply constrained environment, CEO Andy Cronin said.
The new aircraft will be the -900 variant and are scheduled for delivery between 2026 and 2028. Avolon is also converting 50 Airbus A320neos on order to the larger A321neo model.
“We’re very comfortable about the placement prospects [of the A330s],” Cronin said June 21. “We have completed all our A330neo placements from our existing pipeline prior to this order and we’re really excited by the uptick in demand.”
Avolon’s own forecasts show the worldwide fleet will almost double by 2042, growing 94% to 46,880 aircraft. While the narrowbody segment is expected to drive fleet growth—more than doubling to 34,320—the widebody fleet will increase by 97% to 7,480 aircraft.
Cronin said there were “significant opportunities” for the A330neo in the replacement market. “The A330ceo has proven to be one of the workhorses of the industry, particularly in Asia,” he explained.
“Some of those are now due for replacement and we’re seeing more and more acceleration of interest and engagement of airlines who are existing A330ceo operators and are looking for the next logical step.”
Avolon CCO Paul Geaney said recent aircraft delivery delays have been a frustration for the company and airline operators, but he believes the situation is improving.
“What is key is having a strong relationship with the manufacturers—having clear and honest, transparent communication. And that is what we have,” he said.
Airbus expects to increase output of the A330neo from three aircraft per month to four by 2024 and boost A350 production by 50% from six per month to nine at the end of 2025. Asked whether there were plans to increase the widebody production rate further, Airbus CCO Christian Scherer said: “We continue to see strong demand for widebody aircraft—I think that’s one of the realizations of this air show. We’re seeing the same phenomenon happening in the widebody space that we’re seeing in the single-aisle space.
“It would be premature to talk about production—it has already been publicized and we’ll run four per month on the A330—but if this demand continues, we might have to ask ourselves the question.”
Avolon’s MOU with Airbus comes a day after the company finalized an order for 40 more Boeing 737 MAX 8s, firming a nonbinding commitment that was first announced in April. Cronin said these aircraft will be delivered toward the end of the decade.
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