Summary

  • Aviation Capital Group (ACG) has confirmed that it purchased 35 Boeing 737 MAX aircraft, with deliveries ending in 2031.
  • The aircraft lessor has many aircraft types on order, including both from Airbus and Boeing.
  • The order has provided a much-needed boost for Boeing’s commercial efforts of the 737 MAX.

Aviation Capital Group (ACG), a United States-based aircraft leasing company, has confirmed that it purchased 35 Boeing 737 MAX aircraft, which was a much-needed nod for the aircraft manufacturer and the narrowbody program.

Split between 737 MAX 8 and 737 MAX 10

The jointly issued statement by both companies indicated that the aircraft lessor had confirmed orders for 16 737 MAX 8 and 19 737 MAX 10 aircraft. The Federal Aviation Administration (FAA) still has not certified the latter for commercial operations.

Nevertheless, Thomas Baker, the chief executive officer (CEO) and president of ACG, remarked that the latest firm order for the 737 MAX enhanced the strategic value of the lessor’s order book and supported a key pillar of its growth strategy. Furthermore, the order reinforced its commitment to invest in modern and fuel-efficient aircraft, Baker added.

“We look forward to supporting our airline customers throughout the world with these highly versatile and fuel-efficient aircraft.”

A Boeing 737 MAX 10 on an airport apron.

Photo: Boeing

Meanwhile, Brad McMullen, the senior vice president of Commercial Sales and Marketing of Boeing, continued by noting that the repeat order showcased that ACG’s customer airlines are looking to operate flexible and fuel-efficient fleets of aircraft.

McMullen highlighted that ACG has been a valued partner of the 737 MAX program, with Boeing looking forward to working with the aircraft lessor to deliver a next-generation aircraft to ACG’s customers.

However, while the two companies’ joint statement did not indicate a delivery date for the 35 aircraft or potential customer(s) for the 737 MAXs, a statement by Tokyo Century on July 12, the parent company of ACG, read that deliveries would be complete by 2031.

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Despite problems and intense backlash, the lessor has committed to the successful type.

Adding more 737 MAXs to the backlog

According to ch-aviation data, ACG has 105 aircraft on order, which includes 20 A220-300, ten A320neo, 23 A321neo, five A321XLR, 41 737 MAX 8, and six 737 MAX 10.

Currently, the aircraft lessor manages a fleet of 14 737 MAX 8 (13 owned) and four 737 MAX 9s (all owned). All four 737 MAX 9 are with Copa Airlines, while Boeing delivered the 737 MAX 8s on behalf of ACG to Aerolineas Argentinas, Hainan Airlines, Icelandair, SCAT Airlines, Sunwing Airlines, TUI Airways, TUI fly (Belgium-based TUI subsidiary), and WestJet.

WestJet Boeing 737 MAX 8 shutterstock_2255478023

Photo: Robin Guess | Shutterstock

However, four of the 737 MAX 8 aircraft were redelivered, including the SCAT Airlines 737 MAX 8 (ex-S7 Airlines), TUI Airways and TUI fly aircraft (both ex-Sunwing Airlines), and WestJet’s 737 MAX 8, which was previously operated by the now-defunct Canada-based Lynx Air.

Related

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Financial pressure related to operational costs proved too much for the airline to overcome.

Struggling sales effort of the 737 MAX

Nevertheless, Boeing has booked only 101 orders for the 737 MAX as of June 30, with American Airlines being largely responsible for that number since it ordered 85 737 MAX aircraft that were added to the manufacturer’s backlog in February.

Another order included Alaska Airlines swapping the mid-air door plug blowout incident 737 MAX 9 for a 737 MAX 10 in June, while three other unidentified customer(s) purchased the remaining 15 aircraft of the type.

Boeing 737 MAX 8

Photo: Marco Menezes | Shutterstock

At the same time, while Boeing will not be bringing any flight demonstrators to the upcoming Farnborough International Airshow, the manufacturer could secure additional orders for its best-selling aircraft program during the event, providing a further boost to its commercial efforts in 2024.

Despite its troubling history, which has included two fatal crashes in Indonesia and Ethiopia, the 737 MAX has remained an aircraft that has performed well for airlines that have chosen the type.

At the same time, Airbus and the development of the A321neo and its derivatives, namely the A321LR and A321XLR, have remained a sour point for the US-based manufacturer that has yet to come up with an answer to the latter two Airbus aircraft types.

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Boeing has confirmed that no flight demonstrators, including the 737 MAX or 777X, will be present during the upcoming Farnborough Airshow.

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