Global aviation lessor SMBC Aviation Capital has placed an order for 100 Boeing 737 MAX aircraft, comprising 60 737-10 and 40 737-8 jets, Boeing said Monday in a press release, marking the lessor's first-ever order for the 737-10 variant.

With the new order, SMBC Aviation Capital's owned, managed, and committed portfolio of 737 MAX jets rises to 450 aircraft, according to the release. The company said the deal represents the single largest 737-10 order placed by any lessor to date.

SMBC Aviation Capital CEO Peter Barrett said the transaction was a major turning point for the company and would ensure its airline customers have access to a long-term pipeline of new-technology aircraft. 

He said the order reflected market demand as airline and investor customers looked to move to larger single-aisle jets, adding that the deal underscored confidence in the 737 MAX programme and continued demand for fuel-efficient, technologically advanced narrowbody aircraft.

According to Boeing, the 737-10 offers the best per-seat economics of any single-aisle aircraft, seating up to 230 passengers with a range of 3,100 nautical miles (5,740 km). The larger variant is expected to help SMBC Aviation Capital meet demand for bigger single-aisle jets while diversifying its fleet mix.

Boeing Commercial Airplanes President and CEO Stephanie Pope said the company was honoured that SMBC continued to place its trust in Boeing and the 737 MAX family, calling the order—including SMBC's first 737-10 purchase—a reflection of strong demand for the aircraft's efficiency, reliability, and versatility.

The release noted that global passenger traffic is forecast to grow 4 percent annually over the next two decades, prompting lessors to expand and diversify their single-aisle portfolios. Lessors have ordered more than 1,450 737 MAX jets in total, accounting for 20 percent of the aircraft's overall backlog, according to Boeing.

SMBC Aviation Capital, backed by shareholders Sumitomo Mitsui Financial Group and Sumitomo Corporation, services a fleet of 1,700 aircraft with more than 170 airlines worldwide, the release said.

Source: PR