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Saudi Lessor AviLease Orders Up to 77 Airbus Aircraft at Paris Air Show

Saudi Lessor AviLease Places Landmark Order for Up to 77 Airbus Aircraft at Paris Air Show
Saudi Arabian aircraft lessor AviLease has announced a significant agreement to acquire up to 77 Airbus aircraft, encompassing a combination of freighters and narrow-body passenger jets. This move forms a central part of AviLease’s ambition to rank among the world’s top 10 aircraft lessors by 2030. The deal, unveiled on the opening day of the Paris Air Show at Le Bourget, includes a firm initial order for 10 A350F freighters alongside 30 A321neo and A320neo passenger aircraft. With options exercised, the total order could rise to 22 A350Fs and 55 A320neo jets.
Strategic Selection and Negotiation Process
AviLease’s Chief Executive Edward O’Byrne described the aircraft selection as a “very hard-fought battle” between the Airbus A350F and Boeing 777 freighters, with both models offering distinct advantages. After thorough evaluation from technical, technological, and economic perspectives, the A350F was ultimately chosen. Airbus executive vice president Benoit de Saint-Exupery characterized the negotiations as “intense” over recent months, underscoring the competitive nature of the deal. The financial terms of the agreement were not disclosed.
This contract represents a pivotal start to Airbus’s commercial activities at the Paris Air Show. Established in 2022 and supported by Saudi Arabia’s Public Investment Fund, AviLease currently manages a fleet of nearly 200 aircraft leased to 50 airlines across 30 countries. The company, employing 90 staff, plays a strategic role in Saudi Arabia’s broader economic diversification agenda, which aims to expand non-oil sectors such as aviation, logistics, and tourism.
Market Implications and Delivery Outlook
AviLease is reportedly ahead of schedule in its goal to enter the top tier of global lessors by 2030. The Airbus order follows a recent $4.8 billion agreement with Boeing for 30 737-8 passenger aircraft, signed during a high-profile visit by former US President Donald Trump to Riyadh last month. The newly ordered Airbus jets are slated for delivery between 2030 and 2033. Despite Airbus’s ongoing supply chain challenges that have delayed some deliveries, Saint-Exupery expressed confidence in meeting AviLease’s timeline. Nonetheless, industry analysts caution that managing such a large delivery schedule amid persistent supply uncertainties will be a complex task.
Market observers are closely monitoring the potential impact of this substantial commitment on AviLease’s financial standing and its competitive position within the aircraft leasing sector. The order may prompt rival lessors to reconsider their own procurement strategies and could influence airlines’ fleet planning decisions, particularly if AviLease’s expanded Airbus portfolio shifts market dynamics. The deal also holds implications for Boeing, as airlines might increasingly favor Airbus offerings in response to AviLease’s significant investment.
Future Plans and Regional Growth Prospects
AviLease has yet to allocate the newly ordered aircraft to airline customers. O’Byrne emphasized that the company’s immediate focus is to engage with Saudi Arabian carriers before expanding discussions to global airlines. He highlighted the robust growth potential within Saudi Arabia’s aviation market, noting the kingdom’s strategic efforts to more than double its cargo and logistics infrastructure. “Saudi Arabia is clearly accelerating its economy and diversification, and we need the infrastructure to support both cargo and passenger demand,” O’Byrne stated, underscoring the extensive investments underway in airports and logistics facilities across the country.

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