Boeing and SMBC Aviation Capital have announced an order for 80 737 MAXs, the largest single 737 MAX order from a leasing company that Boeing has received to date, valued at $8.5 billion at list prices.
SMBC Aviation Capital is the world’s third-largest leasing company, with 180 Boeing airplanes in its portfolio and 95 airline customers in more than 40 countries. This order reflects the company’s plans to grow its fleet of high-demand, fuel-efficient airplanes, Boeing indicates.
SMBC Aviation Capital and Boeing celebrated the announcement earlier today at a signing ceremony in Tokyo.
“This order is another example of our history of partnership with SMBC Aviation Capital and Japan,” said Boeing Commercial Airplanes President and CEO Ray Conner. “Today’s announcement from a top leasing company is a vote of confidence in our 737 MAX and helps SMBC Aviation Capital capture the strong demand in the single-aisle market.”
With this agreement SMBC Aviation Capital becomes the 50th 737 MAX customer and grows the program’s order book to more than 2,400 airplanes.
“It is 10 years since our business placed its first order with Boeing and we have enjoyed a decade of successful partnership since then,” said Peter Barrett, CEO, SMBC Aviation Capital. “The 737 MAX 8 is one of the most fuel efficient and versatile aircraft available and today’s announcement shows our ongoing commitment to the new generation of the popular 737 family, as well as our appetite to keep broadening and deepening our platform in order to service our customers’ requirements. Following this order and given the clear commitment of our shareholders and the strength of the global aircraft leasing sector, we remain very confident in our ability to continue to deliver long-term growth.”
Boeing’s Current Market Outlook forecasts that airlines will need more than 25,600 single-aisle airplanes like the 737 MAX over the next 20 years.
The 737 MAX incorporates CFM International LEAP-1B engines, Advanced Technology winglets and other technological improvements to deliver the “highest efficiency, reliability and passenger comfort”, Boeing indicates. The manufacturer rates the 737 MAX as “14% more fuel-efficient than today’s most efficient Next-Generation 737s – and 20 percent better than the original Next-Generation 737s when they first entered service.”
Boeing has been doing business in Japan for more than 60 years and its Japanese customers have bought over 1,000 Boeing airplanes from all Boeing commercial airplane programs: the 737, 747-8, 777 and 787, and now the 737 MAX and 777X.