Boeing and Aviation Capital Group (ACG) yesterday announced an order for 20 737 MAX 8 aircraft at the 2018 Farnborough International Airshow.
The order, valued at $2.34 billion at list prices, raises the aircraft lessor’s 737 MAX direct-buy order quantity to 100.
“The 737 MAX is core to our strategic growth plans, as the airplane continues to command strong interest in the marketplace,” ACG chief executive officer, Khanh Tran said. “This order expands our diverse portfolio, which includes three 737 MAX variants, providing us with more flexibility and some of the most advanced single-aisle jets to serve our customers.”
The new orders will appear on Boeing’s Orders & Deliveries website once all contingencies have been met.
ACG first joined the 737 MAX family in 2012, placing orders for the MAX 8 and MAX 9. The lessor added to its portfolio last year by joining the launch group for the 737 MAX 10, the largest variant with the lowest operating cost per seat.
“We are pleased to extend our partnership with ACG as they continue to expand their 737 MAX portfolio,” said Boeing senior vice president of commercial sales and marketing, Ihssane Mounir. “This order reflects continued market demand for the best single-aisle airplane in its class. The 737 MAX will deliver exceptional performance and market-leading economics to ACG’s world-class customers for many years to come.”
According to the Boeing 2018 Commercial Market Outlook released this week, airlines will need 31,360 new single-aisle airplanes, such as the 737 MAX, over the next 20 years. That represents a 6-percent increase over last year’s forecast. Analysts say the demand is fueled by the success of low-cost carriers and a big requirement for single-aisle jets for growth and replacement.