Boeing NYSE:BA, the U.S. aircraft manufacturer, has secured the first standout order at the Farnborough International Airshow as SMBC Aviation Capital, an aircraft leasing company, agreed to purchase 100 737 Max jets. The order includes 60 of Boeing's larger Max 10 aircraft and 40 Max 8 jets, giving the company an early commercial win at an event where major aircraft commitments are often announced. The agreement may also signal a more active return to air-show dealmaking for Boeing after the company stayed out of last year's gathering following an aircraft accident that occurred a few days before the event.
Aircraft leasing companies have become increasingly important customers for Boeing and Airbus (EADSY), a European aircraft manufacturer, as they allow airlines to modernize their fleets without purchasing expensive aircraft directly. Single-aisle models such as Boeing's 737 and Airbus's A320 are among the most widely flown commercial aircraft, making them particularly liquid and popular assets within the jet-leasing industry. Investors may view SMBC's large order as supportive of continued demand for Boeing's narrow-body aircraft, although the source did not disclose the order's financial value or delivery timetable.
SMBC has also strengthened its position in the global aircraft-leasing market after completing its acquisition of Air Lease, an aircraft leasing company, this year. The transaction established SMBC as the world's second-largest aircraft lessor behind AerCap, the industry's largest leasing company according to the source. The enlarged scale of SMBC, combined with its commitment to buy 100 Boeing jets, could make the lessor an increasingly important customer for aircraft manufacturers as airlines continue using leasing arrangements to update their fleets.