Aviation Capital Group Orders 15 Boeing NG 737-700s

Farnborough: U.S.-based leasing company Aviation Capital Group Wednesday ordered 15 Next Generation 737-700s from Boeing Co. (BA).
The order, revealed at the Farnborough Air Show, is worth $934 million at list prices.
Aviation Capital Group Chief Executive Stephen Hannahs said the leasing company is also considering purchasing an additional 10 or 15 Boeing 787s. The company has already ordered five 787 Dreamliners and 91 Next Generation 737s, of which 89 are still to be delivered.
AGC owns 230 aircraft of which 131 are Boeing airplanes.
The latest order from ACG follows an April order for 17 Next Generation 737s. Hannahs said the leasing company expects to receive seven Boeing aircraft this year, and 10 next year, building up to 25 deliveries annually.
He said leasing has become a more viable option for airlines given the difficulties facing the industry, with skyrocketing fuel prices and "challenges" in the capital markets. Only 5% of ACG's portfolio is in the U.S., but Hannahs added that U.S. airlines are in "desperate need" of refleeting, especially to replace older, less fuel-efficient aircraft.
Hannahs said ACG focuses on international customers, adding that there is still strong growth in India, Asia, the Middle East and Eastern Europe. Latin America is also beginning to show potential, he added.
16/07/08 Dow Jones/CNNMoney.com

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Categories: Farnborough Air Show 2008