Boeing [NYSE: BA] and AviLease, a leading aircraft lessor based in Saudi Arabia, have finalized a significant agreement for a bulk 737 MAX order.
AviLease placed its first direct order with Boeing for 20 narrowbody 737 MAX 8 aircraft. The agreement includes options to purchase 10 additional aircraft.
This deal marks a milestone for Saudi lessor as it expands its portfolio with modern, fuel-efficient aircraft to meet growing customer demand.
Supporting Saudi Arabian Aviation Growth
Edward O’Byrne, CEO of AviLease, gave his comments on the order. “This is our first direct purchase from an aircraft manufacturer, reinforcing our strategy to lead the leasing industry,” he said.
“With our recent investment-grade ratings, this deal showcases our ability to operate across various market channels, including direct OEM purchases. These 737-8 jets will drive our growth and provide customers with cutting-edge, eco-friendly aircraft. We thank Boeing for our strong, ongoing partnership.”
The order supports Saudi Arabia’s ambition to become a global aviation hub. The 737-8 jets will help the Kingdom achieve its goal of serving 330 million passengers and attracting 150 million visitors annually by 2030.
These aircraft offer superior fuel efficiency and flexibility, aligning with the country’s vision for sustainable aviation growth.
Boeing Perspective
Brad McMullen, Boeing’s senior vice president of Commercial Sales and Marketing, highlighted the partnership’s importance. “We’re proud to deepen our collaboration with AviLease and expand the global 737 MAX fleet,” he said.
“The 737-8 delivers unmatched efficiency and versatility, empowering AviLease to grow profitably while supporting their airline customers’ sustainability and business objectives.”
The Boeing 737 MAX is a cornerstone of the leasing market, making up about 30% of all financed aircraft. Its low operating costs and global customer base make it a top choice for lessors like AviLease, ensuring strong returns and operational reliability.
This agreement serves to further strengthen Boeing’s presence in the Middle East. The partnership also supports Saudi Arabia’s ambition to become a global aviation hub while advancing eco-friendly air travel.
Despite Boeing’s recent 737 production challenges, such orders signal confidence in its recovery and the enduring appeal of the 737’s cost-effectiveness. As Boeing addresses quality and production hurdles, deals like this further support its rebuilding efforts.
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