Los Angeles Business Journal

Air Lease Orders 75 Boeing Jets for $7.2 Billion

By Deborah Crowe Monday, July 9, 2012

Air Lease Corp. on Monday said it has ordered 75 of Boeing Co.’s new 737 Max jets as the Century City company continues to build its fleet of fuel-efficient aircraft to lease to cost-conscious airlines.

The deal is worth an estimated $7.2 billion based on list prices. Air Lease did not say to which airlines it expects to lease the aircraft, or when the first jets are expected to be delivered.

Air Lease is the first company to order the single-aisle jets for leasing purposes, Air Lease and Boeing said in their joint announcement. Boeing touts the 737 Max as offering a 13 percent fuel burn improvement over current fuel-efficient single-aisle airplanes.

“The 737 Max represents a step-change improvement that our airline clients need to compete in the future,” Air Lease Chief Executive Steven Udvar-Hazy said in a statement.

Last month, the company signed an 18-aircraft lease deal with China Southern Airlines, which was the company’s largest lease placement to date. The planes were valued at $800 million. The company in recent months has signed lease agreements with several Asian airlines for delivery dates through 2015.

Shares closed down 7 cents, or less than 1 percent, to $19.15.