SMBC Aviation Capital Expands Its Boeing 737 MAX Portfolio with a New Order of 25 Jets
SMBC Aviation Capital has placed an order for 25 Boeing 737-8s, expanding its 737 MAX portfolio to 81 jets, as Boeing and SMBC Aviation Capital announced on September 12, 2023. This move comes with a global surge in travel demand, with lessors keen on augmenting their single-aisle portfolios to offer airlines more fuel-efficient jets adaptable to diverse route networks. Here, we delve into the specifics of this significant order and what it entails for the aviation industry.
Details of the Order
The new order is a testament to SMBC Aviation Capital's commitment to providing its customers with the latest technology and the most fuel-efficient aircraft, aiding them in achieving their sustainability objectives and reducing operating costs. The 737-8s are known for their fuel and emission reduction capabilities, reducing fuel use and emissions by up to 20% on average and saving up to 8 million pounds of CO₂ emissions annually per airplane compared to the aircraft they are set to replace.
Peter Barrett, CEO of SMBC Aviation Capital, emphasized the apparent and long-term demand for the 737 MAX from their customers and expressed optimism about the company's future growth prospects against the backdrop of a robust global recovery in air travel.
Features of the 737-8
The 737-8 aircraft is renowned for its versatility and unparalleled fuel efficiency, making it a vital asset for the leasing community in assisting airlines in achieving their sustainability and efficiency objectives. The aircraft can seat between 162 to 210 passengers depending on its configuration and has a range of 3,500 nautical miles, making it profitable for short- and medium-haul routes.
Stan Deal, president and CEO of Boeing Commercial Airplanes highlighted SMBC's confidence in the value the 737-8 brings to airline customers, showcased through this substantial addition to its 737 MAX backlog.
About SMBC Aviation Capital
Headquartered in Dublin, Ireland, SMBC Aviation Capital is the second-largest aircraft operating lease company globally by the number of aircraft. Established in 2001 and acquired by a consortium of Japan's prominent companies SMFG and Sumitomo Corporation in 2012, the company focuses on the most technologically advanced, fuel-efficient, and narrow-body aircraft types. It boasts an owned, managed, and committed fleet of just under 900 aircraft.
Boeing, a leading global aerospace company, serves customers in over 150 countries, developing, manufacturing, and servicing commercial airplanes, defense products, and space systems. The company is committed to advancing economic opportunity, sustainability, and community impact, leveraging a global supplier base and a diverse team dedicated to innovation.
This new order from SMBC Aviation Capital strengthens its partnership with Boeing and reinforces its commitment to promoting sustainability in the aviation sector through the acquisition of fuel-efficient aircraft. As the aviation industry witnesses a strong recovery, this deal positions SMBC Aviation Capital favorably to cater to the increasing demand for environmentally friendly and cost-effective air travel solutions.
Note: This article is based on the press release issued by Boeing and aims to present a factual and descriptive summary of the new order placed by SMBC Aviation Capital.