Day 2 of the Paris Air Show provided us with a good look deep into the next few decades of aviation with another massive day for leading manufacturers Boeing and Airbus.
Boeing stole the show again on Day 2 of PAS 2017, showing an incredible amount of orders to boast, including a slew of orders for the newly-launched 737 MAX 10, which will have the seating capacity of a middle-sized jet but the economy of a narrowbody.
ACG and Boeing Reach Agreement for Order of 20 737 MAX 10 Aircraft
Picking up where the orders left off on Day 1, Day 2 started with a large order of the new Boeing 737 MAX 10 aircraft from Aviation Capital Group (ACG), with the purchase being valued around $2.49 billion at current list prices, provided by Boeing. ACG joins multiple other lessors that have purchased a large sum of the new 737 MAX 10 aircraft. The lessor already has 60 current MAX orders, featuring a mix of MAX 8 and MAX 9 aircraft.
Khanh T. Tran, CEO of ACG, said in a statement, “As a long-standing Boeing partner, we are pleased to be a launch customer for the new 737-10 variant. This order further underscores our commitment to ACG’s growth strategy and provides us flexibility with this new variant of the proven successful family of Boeing 737 aircraft.”
Lessor Avolon and Boeing Agree to Order of 75 737 MAX 8 Aircraft
In one of the single biggest orders we’ve seen so far at PAS, the announcement of the agreement between Avalon, an Irish aviation lessor, and Boeing for 75 Boeing 737 MAX 8 aircraft was the biggest order of the day. With an estimated value of $8.4 billion, the 75 examples on order join another 50 examples already purchased last year.
“Our strategy is to maintain an industry leading portfolio of young, modern and fuel efficient aircraft. We were pleased to deliver the world’s first ever 737 MAX 8 this year and the addition of 75 Boeing 737 MAX aircraft reflects our commitment to our customers to have a product offering built around the most technologically advanced and efficient aircraft available in the market,” Avolon CEO, Domhnal Slattery, said in a statement.
United and Boeing Commit to Order for 100 737 MAX 10 Aircraft and 4 777-300ER Aircraft
In what was by far the most notable American carrier order of the day, (and potentially the entire show) United Airlines announced an agreement with Boeing to order 100 Boeing 737 MAX 10 aircraft, becoming the largest Boeing 737 MAX 10 customer in the world for the time being. Along with the massive 737 order, United also ordered four additional 777-300ER aircraft to add to the 14 already on order. These 777’s are primarily used on international routes requiring more premium seats, but have recently been seen on domestic runs in between long-haul flights.
“We’re excited that our long partnership with United will extend far into the future. The 737 MAX 10 will provide even more flexibility to United’s route schedule and will bring to their operation the best economics of any airplane in the single-aisle segment. We’re also proud that United’s 777-300ER fleet continues to grow,” Boeing CEO Kevin McAllister said in a statement.
Ethiopian Airlines and Boeing Agree to Order of Two 777 Freighters
As part of an expansion of “Ethiopian Cargo,” the cargo subsidiary of full-service carrier Ethiopian Airlines based in Addis Ababa, they have agreed with Boeing to purchase two more Boeing 777 Freighters, an order valued at $651.4 million based on current list prices. The order comes weeks after the announcement of the order of 30 737 MAX 8 aircraft, the largest order for the type in Africa.
“Building one of the largest cargo terminals in the world and operating new-generation, high-performance aircraft reflects our commitment in expanding and supporting the exponentially growing imports and exports of our country in particular and the African continent in general. The commitment to purchase two 777 Freighters is expected to boost the Ethiopian Cargo & Logistics Services.” Tewolde GebreMariam, GCEO of Ethiopian Airlines said in a statement.
Despite being overshadowed by some massive orders from Boeing, Airbus also gained some momentum with some key orders from large leasing companies.
CDB Aviation Commits to 45 Airbus A320neo Family Aircraft
Dublin, Ireland-based Aviation Lease Finance DAC (CDB Aviation) placed one of the largest neo orders of the week Tuesday, with the signing of memorandum of understanding stating the purchase of 45 Airbus neo aircraft, 30 A320neos and 15 A321neos, both members of Airbus’ newest line of modern, single-aisle aircraft. In addition to the purchase, 15 A320neo aircraft previously ordered by CDB have been converted to A321neo orders.
Peter Chang, CDB Aviation President & CEO said in a statement, “We are investing in the A320neo because we believe our customers will benefit from such an advanced aircraft. These aircraft will strengthen our overall aircraft portfolio and assist in the growth of our customer base. Today, our leasing platform is based on a strong funding source, strong team, and global reach.”
Viva Air Confirms Order with Airbus for 50 A320neo Aircraft
Viva Air, a Peruvian low-cost carrier based at Jorge Chavez International Airport in Lima, Peru will build the foundation of it’s fleet on an order for 50 Airbus A320 aircraft, 35 of which are of the newer “neo” variant, and 15 of the “ceo” variant, which has been in production for many years. Viva Air was formed by Irelandia, the developers of many incredibly successful airlines such as Ryanair, Allegiant Air, VivaAerobus, and Tigerair. Currently, the airline only has two aircraft operating to Arequipa, Chiclayo, Cuzco, Iquitos, Lima, Piura, Tarapoto, and Trujillo, meaning the fleet is worked very hard with little to no slack. The order of these new aircraft is also part of the airlines’ long-term goal to create a dynamic network across the Americas.
Delta Orders an Additional 10 Airbus A321 Aircraft
Atlanta-based Delta Air Lines have announced the order of an additional 10 Airbus A321 aircraft in addition to the 30 already on order. The airline took the initial A321 frame in March of last year, and Delta has a total A321 order of 122 aircraft still being fulfilled. Each example is powered by CFM International CFM56 engines.
“This order for 10 more A321’s from Delta shows yet again the confidence this great airline has in great aircraft. Passengers, airlines crews and investors look to the A320 family to deliver unsurpassed comfort, economy, and reliability. We are most gratified to keep providing Delta with the aircraft platforms on which they can deliver their own, unique brand of ‘service and hospitality from the heart,'” John Leahy, COO of Customers for Airbus Commercial Aircraft noted.
Despite not picking up the expected large quantity of C-Series orders as expected, Bombardier landed a key order from Indian carrier Spicejet.
Spicejet Reaches Agreement with Bombardier for 50 Q400 Aircraft
The biggest order Bombardier has picked up thus far at PAS 2017 has been the order of 50 Bombardier Q400 prop jets to Indian carrier Spicejet. The airline placed a firm order for 25 examples, and 25 options, with a total value of around $1.7 billion at current prices. The order will allow Spicejet to further expand into more remote airports located in the Indian subcontinent from its’ hubs at Indira Gandhi International Airport in Delhi.
Spicejet CMD Ajay Singh spoke on the order, saying “We are already operating a fleet of 20 Q400’s and will add another 25 by early 2020. The deliveries start during early 2018 and we will induct one aircraft per month until 2020. Besides the smaller sectors in India, we feel there is a lot of potential in the international sector. Our Q400’s fly to Male from Trivandrum and Kochi and Kolkata to Dhaka already. We can connect many more nearby international destinations to smaller cities like Varanasi-Kathmandu,” he later added.