Saudi plane lessor AviLease has signed a deal for up to 77 Airbus planes, featuring a mix of freighters and narrow-body passenger jets, as it seeks to become one of the world's top 10 lessors by 2030.
The company signed an initial firm order for 10 A350F, the freighter variant of the A350 platform, along with 30 A321 Neo and A320 Neo planes during the first day of the Paris Air Show at Le Bourget. This could increase to 22 A350Fs and 55 A320 Neo jets, with added options included. The airline declined to disclose the value of the deal.
"It was a very hard fought-battle on the A350 vs the [Boeing] 777," Edward O’Byrne, chief executive of AviLease, said at a press briefing. "Frankly, it was a very close discussion because the two deals on the table both had pros and cons."
The company reviewed the offers from a technical, technology and economic standpoint and the A350F emerged as the winner, he said.
Negotiations over the past few months were intense, said Benoit de Saint-Exupery, Airbus executive vice president in sales of the commercial aircraft business. The signing ceremony kicked off Airbus's deal-making at the Paris Air Show.
AviLease has a fleet of nearly 200 aircraft, a mix of Boeing and Airbus jets. With a workforce of 90, it leases aircraft to 50 airlines in 30 countries.
Established in 2022, AviLease is backed by Saudi Arabia's Public Investment Fund, which is supporting the kingdom's economic diversification plan to develop non-oil sectors such as aviation, logistics and tourism.
AviLease is two years ahead of schedule for its goal to become one of the top 10 plane lessors by 2030, Mr O'Byrne said.
The Airbus deal comes after Boeing signed a $4.8 billion deal with AviLease for 30 737-8 passenger planes. The deal was signed during US President Donald Trump's visit to Riyadh last month.
The company expects the Airbus planes to be delivered between 2030 and 2033, its chief executive said.
Airbus, which has been facing supply chain issues that delayed deliveries to some of its customers, is confident in handing over these jets in time, Mr Saint-Exupery said.
While AviLease has not yet placed the jets with airline customers, Mr O'Byrne told The National the priority is for discussions with Saudi airlines and then global carriers.
"We started discussions and there is a big potential growth in Saudi markets," he said. The kingdom's aviation strategy calls for more than doubling its cargo and logistics infrastructure, he added.
"Saudi Arabia is clearly accelerating its economy, its diversification, and we need the infrastructure to support both cargo and passenger side," he said. He highlighted the "tremendous" size of investment in airports and logistics.
In April, Riyadh Air said it was considering an order for dedicated freighters after it makes a decision on an order for wide-body passenger planes.
The AviLease boss also said a vast wave of older freighters is being retired, combined with production limitations at Boeing and Airbus, creating a "market need" globally beyond Saudi Arabia.
Airbus is expected to dominate this year's Paris Air Show, as Boeing executives cancelled plans to attend after an Air India crash killed all but one of 242 people on board the US-built plane.
