What's Happening?
AerCap, a leading aircraft leasing company, has announced an order for 15 additional Boeing 787-9 aircraft at the Farnborough Airshow. This new order allows AerCap the flexibility to switch to the larger Boeing 787-10 model if market demand shifts. AerCap, already
the largest owner of Boeing 787s, had previously committed to 125 of these aircraft, with only nine yet to be delivered. The new aircraft will be powered by GE Aerospace GEnx-1B engines, although the delivery schedule has not been disclosed. The company’s CEO, Aengus Kelly, highlighted the strong demand for modern, fuel-efficient widebody airplanes, emphasizing the 787's strong operating economics and performance. AerCap's existing customer base for the 787 includes major airlines such as Virgin Atlantic, Thai Airways, and LATAM Airlines.
Why It's Important?
This expansion by AerCap underscores the growing demand for fuel-efficient widebody aircraft in the aviation industry. As airlines seek to modernize their fleets with more economical and environmentally friendly options, the Boeing 787 series stands out for its operational efficiency. AerCap's decision to increase its 787 fleet positions the company to meet this demand, potentially enhancing its market share in the leasing sector. The move also reflects broader industry trends where lessors are increasingly interested in widebody aircraft due to their versatility and performance across various route networks. This development could influence other leasing companies to follow suit, impacting the competitive dynamics within the aviation leasing market.
What's Next?
With the new order, AerCap is poised to strengthen its position in the aircraft leasing market. The company will likely focus on finalizing delivery schedules and potentially negotiating lease agreements with airlines looking to expand or renew their fleets. As the aviation industry continues to recover from the impacts of the pandemic, demand for efficient aircraft is expected to rise, providing AerCap with opportunities to capitalize on its expanded fleet. Additionally, the flexibility to switch to the larger 787-10 model could allow AerCap to adapt to changing market needs, offering airlines a broader range of options.
