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Avolon firms up deal for 75 Boeing jets, may order 20 more

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FILE PHOTO: Boeing’s logo is seen during Japan Aerospace 2016 air show in Tokyo, Japan, October 12, 2016. REUTERS/Kim Kyung-Hoon/File Photo

HONG KONG/PARIS (Reuters) – Chinese-owned aircraft leasing company Avolon has firmed up an order for 75 Boeing (BA.N) airplanes and may order 20 more, its parent Bohai Capital (000415.SZ) said on Sunday.

The Dublin-based leasing group, founded by Chief Executive Domhnal Slattery, agreed to buy 55 Boeing 737 MAX 8 aircraft and 20 of the higher-capacity Boeing 737 MAX 10, Bohai said in a filing.

It may order an additional 20 of the main 737 MAX 8 version, it added.

Based on published prices, the confirmed part of the deal would be worth $8.7 billion at list values, though analysts say buyers typically get discounts of at least 50 percent for significant orders of such models.

Including the possible extra purchase of 20 jets, the total deal would be worth $11 billion at list prices, Bohai said.

Both deals were approved on Nov. 8, company filings show.

Airbus declined to comment on the timing of the announcement.

Both jet manufacturers have significant further orders from Chinese companies on their books, but names have not yet been disclosed for commercial reasons, industry sources said.

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