Avolon, an aircraft leasing company, agreed to a transaction with Malaysia Aviation Group, owner of Malaysia Airlines, for the financing of 20 A330-900neo aircraft. The transaction comprises the placement of 10 A330neo aircraft from Avolon’s orderbook and 10 A330neo aircraft to be acquired from Malaysia Aviation Group via sale-and-leaseback.

The aircraft will deliver from 2024 onward and be powered by Rolls-Royce engines. Avolon has a longstanding relationship with Malaysia Aviation Group and currently has four aircraft on lease to the company.

Avolon was a launch customer of the A330neo in 2014 and has a total of 48 A330neo aircraft in its portfolio, with 26 owned and managed and 22 on order. Following this transaction, Avolon has only two unplaced A330neo in its orderbook.

Malaysia Airlines is Malaysia’s national airline and wholly-owned by the Malaysian Government. Malaysia Airlines currently operates a fleet of 97 narrowbody and widebody aircraft.

The transaction was announced in Putrajaya, Malaysia, and led by, YB Datuk Seri Ir. Dr. Wee Ka Siong, the Malaysian minister for transport.

“Today’s announcement builds on our longstanding relationships with industry leaders such as MAG, Airbus and Rolls-Royce, and we are delighted to partner with them to deliver a unique portfolio solution that will support MAG’s operations and business growth,” Andy Cronin, CEO designate of Avolon, said. “As the Asian aviation market continues to emerge from the pandemic, this A330neo transaction will help MAG renew its fleet and position them to capitalize on market recovery. The enhanced fuel efficiency and performance, as well as the unit cost improvements of the A330neo compared to older generation aircraft, will allow MAG to meet the growing demand for air travel in the region, further strengthening their position as one of the leading carriers of choice in the Asia Pacific market. As previously disclosed, we are experiencing a rapid recovery in demand for our orderbook slots for both our single and twin-aisle new technology aircraft, and we are delighted to partner with MAG on this milestone transaction.”

“We are pleased to conclude a strategic understanding with Avolon on the renewal of our widebody fleet modernization through the leaseback arrangement of 10 A330neo aircraft and acquire another 10 aircraft directly from Airbus,” Captain Izham Ismail, group CEO of Malaysia Aviation Group, said. “The innovative, cost effective, successful approach offers a holistic solution to fleet owners that is financially viable for MAG as we secure a lower and stable cost base, and with assurance of support financing.”