Aviation finance company Avolon agreed to the sale and leaseback of nine new Airbus A320neo family aircraft with the Cathay Group, an Asian airline group. The aircraft are scheduled for delivery in 2026 and 2027 and the transaction consists of a mix of A321neos and A320neos.

The transaction adds new technology aircraft to support the Cathay Group’s commitment to growing connectivity at its home hub in Hong Kong. A320neo family aircraft deliver a 20% fuel savings and CO2 reduction compared to previous-generation Airbus A320 aircraft. The A321neo is the extended version of this aircraft type and is capable of carrying up to 244 passengers with a range of 7,400 kilometers.

Avolon has 101 A320neo family aircraft in its fleet, with an orderbook pipeline for a further 192 of this aircraft type as of Sept. 30.

The Cathay Group currently flies to more than 75 passenger and cargo destinations worldwide, serving an additional 160 destinations through codeshare agreements, and has a fleet of 225 aircraft as of June 30.

“The Cathay Group is a leading airline operator in Asia, and we are very pleased to agree [to] this sale and leaseback transaction with them and look forward to our future partnership,” Paul Geaney, president and chief commercial officer at Avolon, said. “Passenger traffic in and out of Hong Kong has bounced back strongly this year, and these aircraft will help to support the Cathay Group’s fleet strategy and future expansion.”