Aviation Capital orders 20 Boeings, 20 Airbus Jets

SEATTLE -- Leasing company Aviation Capital Group has ordered 20 Boeing passenger jets and another 20 planes from rival Airbus, the companies said Monday. The orders are valued at more than $3 billion at list prices, although customers...


SEATTLE -- Leasing company Aviation Capital Group has ordered 20 Boeing passenger jets and another 20 planes from rival Airbus, the companies said Monday.

The orders are valued at more than $3 billion at list prices, although customers typically negotiate steep discounts for bulk orders.

The order for 15 narrowbody Boeing 737s and five twin-aisle 787s was previously attributed to an unidentified customer on Boeing's orders and deliveries Web site. The list prices are about $1.6 billion.

Aviation Capital, a subsidiary of Pacific LifeCorp., also ordered 20 planes from Airbus, the Toulouse, France-based aircraft manufacturer said.

Airbus did not disclose the value of the 20 single-aisle planes Aviation Capital ordered, including four A319s, 14 A320s and two A321s. The deal would be worth about $1.5 billion at list prices.

Aviation Capital has a fleet of more than 200 aircraft that includes 70 Airbus jets and 138 Boeing planes, among them 737s, 757s and 767s.

R. Stephen Hannahs, group managing director and chief executive officer of Aviation Capital, called the addition of Boeing's fuel-efficient, long-haul 787 "a significant step forward for our mid-size widebody aircraft."

Boeing's 737 and Airbus' A320 family of planes have been selling well among airlines, particularly budget carriers that fly jets on short- and medium-range routes. Companies have been buying the planes to replace aging, less fuel-efficient jets or to set up new routes.

The midsize 787 was designed to use about 20 percent less fuel than comparable models flying today. It's scheduled to take its first flight this summer and enter commercial airline service in 2008.

Aviation Capital, headquartered in Newport Beach, Calif., leases planes to 95 airlines in 43 countries and provides asset management and other services to aircraft investors and other clients.

Boeing shares rose 35 cents to close at $93.64 on the New York Stock Exchange.


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