Key Points:

  • SMBC Aviation Capital places a $3.7 billion order for 25 Boeing 737 MAX aircraft, eyeing delivery in 2028 and 2029.

  • Despite recent production hitches, Boeing remains committed to its delivery targets, ensuring at least 400 737 deliveries this year.

  • The latest acquisition augments SMBC's Boeing 737 MAX orders to 81, supporting its growth strategy amidst a global air travel recovery.

SMBC Expands Boeing 737 MAX Fleet Amid Anticipation of Air Travel Recovery

DUBLIN —SMBC Aviation Capital, globally recognized as a leading leasing firm, has bolstered its growth strategy and intends to meet soaring customer demand through a significant acquisition. On Tuesday, the company announced the finalization of a deal valuing over $3.7 billion, targeting the procurement of 25 Boeing 737 MAX aircraft.

In light of this deal, SMBC, operating under the patronage of a consortium that incorporates giants such as Japan's Sumitomo Corp and Sumitomo Mitsui Financial Group, plans to extend its Boeing 737 MAX order pipeline to a grand total of 81 jets. Currently stewarding a substantial portfolio of 711 planes, inclusive of 65 MAX aircraft either owned or managed, SMBC is strategically positioning itself to leverage the upswing in air travel as global recovery gains traction. The anticipated delivery for the newly ordered jets is slated for 2028 and 2029.

Peter Barrett, the CEO of the Dublin-based lessor, emphasized the exhibited long-term demand for the 737 MAX from their clientele. He asserted that this augmented order pipeline stands as a testimony to SMBC Aviation Capital's ambition for future expansion, duly noting the promising backdrop of a robust global recuperation in the air travel sector.

It is pertinent to mention that Boeing had reassured last week its steadfast resolve to meet the stipulated delivery goals for the year, undeterred by the recently surfaced production anomaly that stalled the deliveries momentarily. Despite the hiccup, the aircraft manufacturing titan is poised to honor its commitment to dispatching a minimum of 400 narrowbody 737s within this year, reinstating its trust in the best-selling 737 MAX.

This agreement not only reaffirms SMBC's trust in the Boeing 737 MAX but also resonates with a positive outlook towards a resurgence in the global aviation space, premised on a more fuel-efficient fleet, fortified to meet the demands of a new era in air travel.