SMBC Aviation Capital orders 65 more A320neos

Irish lessor SMBC Aviation Capital has switched 15 Airbus A320neos from an existing order to the larger A321neo, as well as announcing a firm follow-on order for 50 A320neos and 15 A321neos with a list-price value of $7.4 billion.

Formally announcing the deal on Jan. 21, Airbus said the 65-aircraft order was finalized in 2018 and included in the manufacturer’s year-end numbers.

SMBC first ordered 110 A320neos in 2014, followed by a further six A320neos in March 2018. With the 15 conversions and the 65 aircraft announced on Jan. 21, this takes SMBC’s total A320neo-family commitment to 181 aircraft, comprising 151 A320neos and 30 A321neos.

“Demand for the latest technology aircraft has been strong both from our existing and new customers, hence our decision today to proceed with this order. In the current environment, airlines are seeking more fuel-efficient aircraft. The make-up of our order book positions us very well for the future to deliver on those needs,” SMBC Aviation Capital CEO Peter Barrett said.

Barrett said the order also demonstrates SMBC’s commitment to further growth.

As of Sept. 30, SMBC had a portfolio of 663 owned, managed and committed aircraft, placed with 90 airline customers in 44 countries. 

“The order ensures SMBC Aviation Capital is well-positioned with A320neo deliveries well into the next decade and brings SMBC Aviation Capital’s total number of owned, managed and committed aircraft to over 720. In total, SMBC Aviation Capital has ordered 277 A320-family aircraft directly from Airbus,” SMBC said.

Airbus CCO Christian Scherer said lessors made up 30% of Airbus’ 800 worldwide deliveries in 2018.