DUBLIN–(BUSINESS WIRE)–Avolon, the international aircraft leasing company, announces that it has agreed a transaction with Malaysia Aviation Group (MAG), owner of Malaysia Airlines, for the financing of 20 A330-900neo aircraft. The transaction comprises the placement of 10 A330neo aircraft from Avolon’s orderbook and 10 A330neo aircraft to be acquired from MAG via sale and leaseback.
The aircraft will deliver from 2024 onwards and be powered by Rolls-Royce engines. Avolon has a longstanding relationship with MAG and currently has 4 aircraft on lease to MAG. Avolon was a launch customer of the A330neo in 2014 and has a total of 48 A330neo aircraft in its portfolio, with 26 owned and managed, and 22 on order. Following this transaction, Avolon has only two unplaced A330neo in its orderbook.
Malaysia Airlines is Malaysia’s national airline and wholly owned by the Malaysian Government. Malaysia Airlines currently operates a fleet of 97 narrowbody and widebody aircraft.
The transaction was announced today in Putrajaya, Malaysia and led by Malaysian Minister for Transport, YB Datuk Seri Ir. Dr. Wee Ka Siong.
Andy Cronin, Avolon CEO Designate, commented: “Today’s announcement builds on our longstanding relationships with industry leaders such as MAG, Airbus and Rolls-Royce, and we are delighted to partner with them to deliver a unique portfolio solution that will support MAG’s operations and business growth. As the Asian aviation market continues to emerge from the pandemic, this A330neo transaction will help MAG renew its fleet and position them to capitalise on market recovery. The enhanced fuel-efficiency and performance, as well as the unit cost improvements of the A330neo compared to older generation aircraft, will allow MAG to meet the growing demand for air travel in the region – further strengthening their position as one of the leading carriers of choice in the Asia Pacific market.
As previously disclosed, we are experiencing a rapid recovery in demand for our orderbook slots for both our single and twin-aisle new technology aircraft, and we are delighted to partner with MAG on this milestone transaction.”
Group CEO of Malaysia Aviation Group, Captain Izham Ismail, commented: “We are pleased to conclude a strategic understanding with Avolon on the renewal of our widebody fleet modernization through the leaseback arrangement of 10 A330neo aircraft, and acquire another 10 aircraft directly from Airbus. The innovative, cost effective, successful approach offers a holistic solution to fleet owners that is financially viable for MAG as we secure a lower and stable cost base, and with assurance of support financing.”
About Airbus A330neo
The A330neo Family is the new-generation A330, comprising two versions: the A330-800 and A330-900. The A330neo Family aircraft shares 95% commonality with the previous A330. It builds on the proven economics, versatility and reliability of the A330 Family, while reducing fuel consumption by 25% per seat versus previous generation competitors and increasing range by up to 1,500nm compared to the majority of A330s in operation. The A330neo is powered by Rolls-Royce’s latest-generation Trent 7000 engines and features a new wing with increased span and new A350 XWB-inspired Sharklets. The cabin provides the comfort of the new Airspace amenities including state-of-the-art passenger inflight entertainment and Wi-Fi connectivity systems.
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is a global leader in aircraft leasing with an owned, managed and committed fleet, as of 30 June 2022 of 851 aircraft.
About Malaysia Aviation Group
Malaysia Aviation Group (MAG) is a global aviation organisation comprising three focused business portfolios from Airlines, Aviation Services and E-Commerce & Travel Services Businesses.
Its current Airlines business portfolio that serves the global, domestic and segmented market comprises Malaysia Airlines – the national carrier of Malaysia, Firefly and MASwings – the regional airlines focused on serving communities across Malaysia, and AMAL by Malaysia Airlines – leading one-stop pilgrimage travel solutions centre.
MAG also focuses on Aviation Services business such as maintenance, repair and overhaul (MRO), cargo, ground handling and training that houses MAB Engineering, MASKargo – one-stop cargo logistic and terminal operations service provider, Aerodarat – one-stop ground handling solution provider and MAB Academy – one-stop Aviation and Hospitality Centre of Excellence.
Journify, the integrated one-stop travel and lifestyle digital platform represents the e-commerce & travel services business portfolio, focusing on providing end-to-end travel solutions, complementing its established strength and expertise in the airline and aviation services businesses.
With the clear business portfolios, MAG is set to achieve its vision anchored on becoming Asia’s Leading Travel and Aviation Services Group, focused on delivering highly customised, end-to-end travel solutions.
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