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qf789
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Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 12:44 pm

Lessor Avolon has announced today that they are cancelling orders for 75 737MAX due for delivery 2020-2023 along with 4 A330neos which were due to be delivered next year.

On top of the cancellations another 16 737MAX are being deferred beyond 2024 and 9 A320neo family aircraft being moved from delivery in 2020-2021 to 2027

https://www.flightglobal.com/air-transp ... 32.article
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PartsGuy20
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 1:06 pm

How many cancelled MAX orders does that make now for Boeing?
 
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lightsaber
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 2:03 pm

Wise of Avalon. I expected more widebody cancellations/deferals.

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Ishrion
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 2:08 pm

PartsGuy20 wrote:
How many cancelled MAX orders does that make now for Boeing?


I think they lost around 41 in February? In addition to Garuda’s previous cancellation of 49 MAXs, they’re at over 150 now.
 
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 2:57 pm

qf789 wrote:
Lessor Avolon has announced today that they are cancelling orders for 75 737MAX due for delivery 2020-2023 along with 4 A330neos which were due to be delivered next year.


Weren't they one of the launch customers for the MAX8 and MAX9? If so, one would expect that with the launch discoounts and subsequent delay compensation their MAXes would be come cheap enough to allow for lower lease rates and thus easier to place at customers.
 
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 2:58 pm

LJ wrote:
qf789 wrote:
Lessor Avolon has announced today that they are cancelling orders for 75 737MAX due for delivery 2020-2023 along with 4 A330neos which were due to be delivered next year.


Weren't they one of the launch customers for the MAX8 and MAX9? If so, one would expect that with the launch discoounts and subsequent delay compensation their MAXes would be come cheap enough to allow for lower lease rates and thus easier to place at customers.


I think they delivered one of the first MAXs to Malindo and Lion Air.
 
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 3:18 pm

Is this the largest 737 MAX order cancellation by one company?
 
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 3:31 pm

If the 330neos were due for delivery this year then surely Avolon have already made several stage payments as the long lead time items will have been produced and who knows what on the frame has already been manufactured.
 
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 3:43 pm

StTim wrote:
If the 330neos were due for delivery this year then surely Avolon have already made several stage payments as the long lead time items will have been produced and who knows what on the frame has already been manufactured.

Right, but we also don't know what the contract between Airbus and Avolon says with regard to cancellation options and penalties. Presumably Avolon sees whomever they penciled in to take the A330neo cannot be expected to do so any time soon, and they lose less money by canceling rather than taking the aircraft. Contracts made during a growth phase to try to place a slowly moving product may make for some hard pills to swallow right about now.
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 4:00 pm

Avolon is owned by HNA so I wonder if this has (in part) something to do with the Chinese Government starting to get rid of HNA's future liabilities as part of the takeover.
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 6:37 pm

Ishrion wrote:
Is this the largest 737 MAX order cancellation by one company?


Apart from airlines collapsing á la Jet Airways, think you're right!

Lion Air threatened to cancel and if they do, that'll be big, Ethiopian havent ruled it out but less, Garuda have 49 remaining that are/are not cancelled, can never get a firm answer on that! All other cancellations have been a few here and there, similar to last months February figures.
 
LJ
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 7:46 pm

zkojq wrote:
Avolon is owned by HNA so I wonder if this has (in part) something to do with the Chinese Government starting to get rid of HNA's future liabilities as part of the takeover.


Aparantly there wasn't much demand. They placed 11 at GOL (though I wonder if they're still going to GOL as those were to be delivered in 2019)

https://www.bizjournals.com/seattle/news/2020/04/03/chinese-backed-aircraft-lessor-avolon-cancels.html?ana=yahoo&yptr=yahoo

The only thing I don't understand is how Avolon could make such a mistake. Or did they have clients, but all backed out recently?
 
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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Fri Apr 03, 2020 7:56 pm

LJ wrote:
zkojq wrote:
Avolon is owned by HNA so I wonder if this has (in part) something to do with the Chinese Government starting to get rid of HNA's future liabilities as part of the takeover.


Wouldn't they've already placed the majority of the order? They placed 11 MAX at GOL, I would reckon they already placed more.

What are the contract terms for placement? Any airline that could wiggle out of almost any order will.

Any orders sold with weak seller negotiating leverage will feel pain. Leasing companies will have airlines exiting any lease possible to save cash.

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Re: Avolon cancels 75 737MAX, 4 A330neo and defers delivery of 25 aircraft

Sat Apr 04, 2020 1:38 pm

lightsaber wrote:
Wise of Avalon. I expected more widebody cancellations/deferals.

Lightsaber


Indeed. There will be many more airlines wise enough to cancel their Max orders though.

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