SMBC Aviation Capital has placed an order for 80 Boeing 737 Max 8 aircrafts. The deal is worth approximately $8.5 billion.
The deal is the largest order of 737 MAX aircrafts by a lessor and the largest Boeing order from a Japanese lessor. The order will be delivered to SMBC Aviation Capital between 2018 and 2022. The aircrafts will be powered by the CFM LEAP engine.
This deal comes after the announcement made in July that the company placed an order of 115 Airbus airplanes expected to be delivered between 2016 and 2022. This was the biggest single-aisle aircraft purchase deal made by anyone in the industry.
Chairman of SMBC Aviation Capital, Shinichi Hayashida said:
“Today’s announcement reinforces our shareholders’ ambition and stated strategy to continue to build a world-leading aircraft lessor with unrivalled assets, expertise and people. We are delighted with the way the business is developing and are confident that Boeing will continue to be a key ingredient in our success for many years to come.”
CEO of SMBC Aviation Capital, Peter Barrett said the deal shows the lessor’s commitment to the new generation of the B737 family along with the lessor’s interest of deepening and broadening its platform in order to meet the demands and requirements of their customers.
“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.”
Peter Barrett said.
Since the platform was established 14 years ago, the business bought over 520 aircrafts. 256 of these aircrafts have been from Boeing.
Lessors from Asia have placed orders of billions of dollars this year as the economic increase in Southeast Asia, India and China demanded more aircrafts. Airbus and Boeing predict the U.S. will be overtaken by China as the largest plane market in the world in twenty years.
SMBC Aviation Capital has a fleet of more than 370 aircrafts valued at over $10.5 billion. This makes SMBC is the third biggest lessor in the world. It has 95 airline customers and more than 40 investors from 40 different countries worldwide. The Dublin RBS Aviation Capital was bought by the Tokyo Sumitomo Mitsui Financial Group in 2012 from the Royal Bank of Scotland for the price of 7 billion dollars.