Avolon Commits To 20 More A330-900s, Moves To Larger Narrowbodies

LE BOURGET—Avolon has agreed to place an order for 20 more Airbus A330-900s and is converting orders for 50 A320neos to the larger A321neo variant.

The lessor signed a memorandum of understanding for the A330neos June 21 at the Paris Air Show. The aircraft are due to be delivered between 2026 and 2028. “We have been a strong supporter of the A330neo program since its launch and with our existing orderbook fully placed, we are now locking in future growth in a supply-constraint environment,” Avolon CEO Andy Cronin says.

Avolon’s Airbus fleet—including owned, managed and committed aircraft—comprises 615 units, among them 55 A330neos, 208 A320s, 285 A320neo family aircraft, 51 A330s and 17 A350s. The company was a launch customer for the A330neo in 2014.

Cronin says the lessor has seen a “huge increase in interest in the A330neo in the past months and quarters.” He also points to a nearing wave of A330 replacements of which Avolon wants to take advantage. Because of the strong demand, Avolon has become more active in terms of direct orders and bought 40 Boeing 737 MAX family aircraft in April, a deal that it converted to a firm order at the Paris Air Show. Cronin had said at the beginning of the year that Avolon would focus more on the sale-and-lease-back market, which it still considers to be an attractive second-growth avenue.

As the company continues to observe a “migration to larger variants of aircraft,” it decided to convert 50 A320neo orders to the A321neo. Aircraft are due to be delivered around the end of the decade. Cronin says some airlines may order aircraft sooner to secure production slots in the 2030s, but he does not feel the same pressure to follow suit—as sale-and-lease-backs always provide a short-term growth opportunity for lessors. They are also a buffer in case of delivery delays, which Chief Commercial Officer Paul Geaney says are becoming less of an issue, noting, “the situation is improving—our customers feel the same.”

Airbus also signed an agreement for four more A330neos with an undisclosed airline.

Christian Scherer, Airbus' chief commercial officer, says the OEM is seeing “continued strong demand for widebodies,” but that it is premature to discuss a further rise in production rates. Airbus is moving the A330neo from three aircraft produced per month to four.