Aircraft Orders & Deliveries
Avolon Leases Six Boeing 737 MAX to Royal Air Maroc Boosting African Aviation
Avolon and Royal Air Maroc sign lease for six Boeing 737-8 MAX aircraft, supporting fleet growth and sustainability in Africa’s expanding aviation market.
Avolon’s Lease Agreement with Royal Air Maroc: Strategic Expansion in African Aviation
The aviation industry is witnessing significant shifts as airlines and lessors adapt to evolving market demands, supply chain constraints, and the drive for sustainability. Among recent developments, the lease agreement between Avolon, a prominent global aircraft lessor, and Royal Air Maroc, Morocco’s national carrier, stands out for its strategic implications. Announced on October 14, 2025, this deal marks a pivotal moment for both companies and signals the growing importance of the African aviation sector on the world stage.
This article explores the details of the agreement, the backgrounds of Avolon and Royal Air Maroc, and the broader context shaping the aircraft leasing market. We will examine how this partnership fits into Royal Air Maroc’s ambitious growth strategy, the trends in aircraft leasing, and what this means for the future of African aviation.
Understanding the Avolon–Royal Air Maroc Lease Agreement
Key Details of the Lease
On October 14, 2025, Avolon and Royal Air Maroc announced a lease agreement for six Boeing 737-8 MAX aircraft. This marks the first direct lease transaction between the two companies. The agreement outlines a phased delivery schedule: the first two aircraft were handed over in the weeks preceding the announcement, with the remaining four slated for delivery through 2025 and 2026. This structured approach enables Royal Air Maroc to gradually integrate the new aircraft into its operations, minimizing disruption and supporting its expansion plans.
The Boeing 737-8 MAX is recognized for its fuel efficiency, offering airlines operational cost savings and a reduced environmental footprint. For Royal Air Maroc, acquiring these aircraft is a key move in its ongoing fleet modernization efforts. The airline has explicitly stated that the new aircraft will support its “Growth Program,” a strategy aimed at transforming the carrier from a regional player into a global connector.
This lease is not only significant for Royal Air Maroc but also for Avolon, as it strengthens the lessor’s presence in the African market, a region with one of the highest projected growth rates in global aviation. The deal is emblematic of the increasing role that lessors play in enabling fleet expansion, especially for airlines in emerging markets.
“We are excited to welcome Royal Air Maroc as a new customer to support their ambitious growth plans. Africa is expected to be one of the fastest growing regions for aviation over the next twenty years, with the network expansion enhancing business growth and social development.”, Paul Geaney, President and Chief Commercial Officer, Avolon
Background on the Companies Involved
Avolon is a leading global aviation finance company with a substantial footprint. As of September 30, 2025, Avolon managed a fleet of 1,159 aircraft, serving 141 airlines across 62 countries. The company’s strategy emphasizes investment in young, modern, and fuel-efficient aircraft, attributes that align with the needs of airlines seeking to balance growth and sustainability. In 2023, Avolon raised $4.9 billion in debt and reported a 36% increase in net income to $143 million in the second quarter of 2025, reflecting robust business performance.
Royal Air Maroc, as Morocco’s national carrier, is a prominent airline in Western Africa. The airline operates a fleet of 59 aircraft and connects 98 destinations in 46 countries. As a member of the Oneworld alliance, Royal Air Maroc is positioned to leverage global partnerships and expand its reach. The airline’s long-term vision is ambitious: to quadruple its fleet to 200 aircraft by 2037, serving an estimated 32 million passengers annually.
The collaboration between these two entities is a strategic fit. Royal Air Maroc gains access to modern, fuel-efficient aircraft without the capital outlay of direct purchases, while Avolon secures a foothold in a rapidly expanding market.
Strategic Implications for Royal Air Maroc and Avolon
The lease agreement is a cornerstone of Royal Air Maroc’s 10-year growth strategy. With new aircraft, the airline aims to expand its route network, including direct flights to Europe, Africa, and the Americas. This expansion is timely, as Morocco is set to host major international events such as the 2025 Africa Cup of Nations and the 2030 FIFA World Cup, both of which are expected to drive increased air travel demand.
In addition to boosting capacity, the Boeing 737-8 MAX aircraft are expected to reduce the airline’s carbon footprint by approximately 15%. This aligns with broader industry trends toward sustainability and supports Morocco’s commitments to environmental stewardship. The lease also allows Royal Air Maroc to maintain operational flexibility, a critical advantage in an industry marked by demand volatility and supply chain challenges.
For Avolon, the agreement not only diversifies its customer base but also enhances its relevance in the African market. The continent’s aviation sector is projected to grow at over 6% annually until 2044, necessitating the addition of more than 1,200 new aircraft. By partnering with leading African carriers, Avolon positions itself to benefit from this growth trajectory.
“This agreement with Avolon represents a significant milestone in the execution of our 10-year ‘Growth Program’. The arrival of these 6 Boeing 737-8 MAX aircraft not only increases our operational capacity but also accelerates our transformation from a regional carrier into a global connector linking Africa with the rest of the world.”, Abdelhamid Addou, Chairman and Chief Executive Officer, Royal Air Maroc
The Broader Context: Aircraft Leasing and African Aviation Growth
Trends in the Aircraft Leasing Market
The global aircraft leasing market is experiencing robust growth, driven by rising air traffic, airline fleet expansion, and delays in new aircraft deliveries from manufacturers. In 2024, the market was valued at $187.1 billion and is projected to reach $207.1 billion in 2025. This growth is underpinned by a supply-demand imbalance that favors lessors, resulting in higher lease rates and a strong appetite for lease extensions.
Aircraft leasing has become a critical tool for airlines to manage capital expenditures, adapt to changing demand, and access the latest technology. For emerging market carriers like Royal Air Maroc, leasing provides a pathway to modernize fleets without the financial burden of outright purchases. This flexibility is particularly valuable in regions where access to capital markets may be more limited.
Recent activities in the sector underscore its dynamism. For example, Avolon recently agreed to lease 10 Airbus A321neos to AJET and delivered the first of six Boeing 737-8 MAX aircraft to Virgin Australia. These transactions highlight the global nature of the leasing business and the increasing importance of lessors in shaping airline fleets worldwide.
African Aviation: Opportunities and Challenges
Africa’s aviation sector is on the cusp of significant expansion. Air traffic is expected to grow at rates exceeding the global average, driven by population growth, economic development, and increased connectivity. The continent’s commercial fleet will require over 1,200 new aircraft by 2044 to meet anticipated demand, presenting substantial opportunities for both airlines and lessors.
However, the sector faces challenges, including infrastructure limitations, regulatory hurdles, and supply chain disruptions. For instance, Royal Air Maroc’s CEO has publicly expressed frustration over delays in aircraft deliveries from Boeing. Such issues can impact fleet planning and operational reliability, underscoring the importance of flexible leasing arrangements.
Despite these challenges, the outlook remains positive. The expansion of major African carriers, increased investment in airport infrastructure, and the entry of new lessors are expected to drive continued growth. Partnerships like the one between Avolon and Royal Air Maroc exemplify how collaboration can help overcome barriers and unlock the continent’s aviation potential.
Fleet Modernization and Sustainability
Fleet modernization is a top priority for airlines worldwide, and Royal Air Maroc is no exception. The addition of Boeing 737-8 MAX aircraft supports the airline’s efforts to improve fuel efficiency, reduce emissions, and enhance passenger experience. In the latter half of 2025, the airline reportedly received nearly one new aircraft every two weeks, a testament to its commitment to rapid modernization.
Sustainability is increasingly at the forefront of airline strategies. The 737-8 MAX’s improved fuel efficiency and lower emissions are important selling points, particularly as regulatory and consumer pressures mount. By leasing these aircraft, Royal Air Maroc can accelerate its sustainability initiatives without long-term capital commitments.
For lessors like Avolon, investing in modern, environmentally friendly aircraft enhances their value proposition to airlines. It also aligns with global efforts to decarbonize aviation, positioning lessors as key enablers of industry transformation.
Conclusion: Impacts and Future Directions
The lease agreement between Avolon and Royal Air Maroc is more than a routine business transaction; it is a strategic partnership that reflects broader trends in aviation. For Royal Air Maroc, the deal is a catalyst for fleet and network expansion, supporting its goal of becoming a global connector. For Avolon, it marks a successful entry into the high-growth African market and reinforces its role as a facilitator of airline modernization.
Looking ahead, the partnership is likely to influence similar deals in the region, as other African carriers seek to expand and modernize their fleets. The continued growth of the aircraft leasing market, coupled with Africa’s rising air traffic, points to a dynamic future for both airlines and lessors. As the industry navigates challenges and capitalizes on opportunities, collaborations like this will play a pivotal role in shaping the next phase of global aviation.
FAQ
Q: How many aircraft are included in the Avolon–Royal Air Maroc lease agreement?
A: The agreement covers the lease of six Boeing 737-8 MAX aircraft.
Q: What is the significance of the Boeing 737-8 MAX for Royal Air Maroc?
A: The aircraft offers improved fuel efficiency and supports the airline’s fleet modernization and sustainability goals.
Q: Why is the African aviation market considered high growth?
A: Africa’s air traffic is projected to grow at over 6% annually until 2044, necessitating the addition of more than 1,200 new aircraft.
Q: What challenges are faced by African airlines in expanding their fleets?
A: Challenges include infrastructure limitations, regulatory issues, and delays in aircraft deliveries from manufacturers.
Sources
Photo Credit: Avolon
Aircraft Orders & Deliveries
Luxair Orders Boeing 737-10 Jets at Farnborough 2026
Luxair converts 737-10 options to firm orders at Farnborough 2026, reaching 12 total 737 family aircraft on order.
Luxair has expanded its narrowbody fleet commitment by converting two options for the Boeing 737-10 into firm orders and securing two additional options during the 2026 Farnborough International Airshow.
The July 21, 2026, announcement by The Boeing Company brings the Luxembourg flag carrier’s total firm order book for the 737 family to 12 aircraft. The agreement supports Luxair’s long-term fleet modernization strategy, which focuses on increasing passenger capacity while reducing the airline’s environmental footprint.
Fleet expansion and aircraft specifications
Once all deliveries are completed, Luxair’s Boeing 737 fleet will consist of eight Boeing 737-8s and four Boeing 737-10s. The airline placed its initial order for two 737-10 aircraft in 2024 and is now moving to integrate the new-generation narrowbodies into a network that serves more than 100 destinations across Europe and beyond.
Luxair has selected a 213-seat configuration for its Boeing 737-10 aircraft. The cabin will feature the Boeing Sky Interior with redesigned seats offering a 76 cm pitch. The 737-10 is the largest model in the MAX family, capable of carrying up to 230 passengers in a maximum high-density configuration, with a range of 3,100 nautical miles (5,740 km).
“This agreement represents another important milestone in the execution of our long-term fleet strategy,” said Gilles Feith, Chief Executive Officer of Luxair. “As we continue to grow, delivering an outstanding passenger experience remains at the heart of every fleet decision we make. The Boeing 737-10 provides the additional capacity, operational efficiency and flexibility we need to support future demand while maintaining the high standards of quality, comfort and service our customers expect from Luxair.”
Environmental and operational targets
The integration of the Boeing 737-10 is central to Luxair’s sustainability initiatives. Powered by CFM International LEAP-1B engines, the new aircraft deliver a 20 percent reduction in fuel use and emissions compared to the older generation aircraft they will replace. According to Boeing, each new-generation 737 saves an average of 8 million pounds of carbon dioxide emissions annually.
The operational efficiency of the new fleet is designed to support Luxair’s growth trajectory following a strong performance in 2025, during which the airline transported 2.6 million passengers.
“Both the 737-8 and 737-10 are perfectly suited across Luxair’s network, increasing capacity on to its regional routes, comfortably serving more passengers on more routes with the lowest cost per seat of any single-aisle airplane,” said Ricardo Cavero, Vice President of Europe and Israel Commercial Sales and Marketing for The Boeing Company. “With the selection of the 737-8 and 737-10, Luxair is building a more profitable and sustainable operation.”
AirPro News analysis
Luxair’s decision to convert options into firm orders at the Farnborough International Airshow signals strong confidence in the Boeing 737-10 as the cornerstone of its high-density European routes. By standardizing its future narrowbody growth around the 737-8 and 737-10, we see Luxair prioritizing fleet commonality, which traditionally lowers maintenance and crew training costs. The retention of two new purchase rights also provides the carrier with a low-risk mechanism to secure future delivery slots in a constrained global supply chain environment.
Sources: The Boeing Company
Photo Credit: Boeing
Aircraft Orders & Deliveries
Riyadh Air Orders 31 A350-1000s and 67 Boeing 787s
Riyadh Air firms up A350-1000 and 787 Dreamliner orders at Farnborough 2026, targeting 100 global destinations by 2030.
Saudi Arabian startup carrier Riyadh Air (RX) has expanded its future widebody fleet by firming up an order for six additional Airbus A350-1000 aircraft at the Farnborough International Airshow on July 20, 2026. The agreement exercises purchase rights from a 2025 commitment for up to 50 airframes, bringing the airline’s total firm backlog for the European manufacturer’s largest twin-engine jet to 31 aircraft.
In a press release issued during the airshow, Airbus confirmed the transaction and noted that Riyadh Air will become the first operator of the A350-1000 in Saudi Arabia. The acquisition aligns with the carrier’s mandate to support the national Vision 2030 strategy, which targets serving more than 100 global destinations by the end of the decade.
Expanding the Airbus widebody footprint
The Airbus A350-1000 offers a maximum non-stop range of 9,700 nautical miles (18,000 kilometers), providing the operational capability required for Riyadh Air’s planned ultra-long-haul services. Airbus states the aircraft delivers a 25 percent advantage in fuel burn, operating costs, and carbon emissions compared to previous-generation widebody aircraft.
Riyadh Air Chief Financial Officer Adam Boukadida stated that the finalized order reflects continued confidence in the airline’s growth trajectory and the broader Saudi aviation sector.
“Increasing our A350-1000 commitment to 31 aircraft strengthens the foundation of our future network and supports our ambition to serve more than 100 global destinations by 2030 while delivering a premium guest experience,” Boukadida said.
Airbus Executive Vice President of Sales for Commercial-Aircraft Benoît de Saint-Exupéry added that the commitment highlights the aircraft’s efficiency and range. He noted the A350-1000 will play a central role in positioning Saudi Arabia as a leading international aviation hub. As of the end of June 2026, Airbus had recorded 1,595 firm Orders for the A350 family from 68 customers worldwide.
Concurrent Boeing 787 Dreamliner expansion
The Airbus finalization occurred alongside a separate widebody order placed with The Boeing Company. According to reporting by Al Arabiya, Riyadh Air also confirmed an order for 28 additional Boeing 787 Dreamliner aircraft at the Farnborough event on July 20.
This separate agreement introduces the Boeing 787-10 variant to the carrier’s fleet. Following the announcement, Riyadh Air’s total firm commitment for the Dreamliner family stands at 67 aircraft.
Riyadh Air Chief Executive Officer Tony Douglas told Al Arabiya that the introduction of the 787-10 and the expanded Dreamliner backlog marks another significant milestone in the airline’s journey toward its 2030 network goals. The carrier recently opened ticket sales for its initial overseas routes as it prepares for the launch of commercial operations.
AirPro News analysis
We view Riyadh Air’s dual widebody orders at Farnborough as a clear signal of the carrier’s aggressive timeline and robust capital backing. By splitting its high-capacity, long-haul requirements between the Airbus A350-1000 and the Boeing 787-10, the airline mitigates delivery risk in an era of constrained aerospace supply chains. Securing 31 firm A350-1000s and 67 Boeing 787s provides the necessary metal to rapidly scale a global network from scratch. However, the operational complexity of inducting two distinct widebody types simultaneously will require substantial training, tooling, and maintenance infrastructure investments prior to the Launch of commercial flights.
Sources: Airbus
Photo Credit: Airbus
Aircraft Orders & Deliveries
SMBC Aviation Capital Orders 200 Aircraft at Farnborough 2026
SMBC Aviation Capital placed firm orders for 100 A320neo family and 100 Boeing 737 MAX jets at Farnborough Airshow 2026.
Aircraft lessor SMBC Aviation Capital secured a massive dual-manufacturer commitment at the Farnborough International Airshow on July 20, 2026, placing firm orders for 100 Airbus A320neo family aircraft and 100 Boeing 737 MAX jets.
The 200-aircraft acquisition guarantees the lessor a steady stream of narrowbody deliveries into the mid-2030s. This strategic move comes as the broader aviation industry continues to grapple with persistent supply-chain bottlenecks that have constrained production rates at both major airframers.
Airbus narrowbody commitments
In a press release issued during the airshow, Airbus confirmed the firm order consists of 65 Airbus A321neo and 35 Airbus A320neo aircraft. The agreement pushes the total number of direct Airbus commitments from SMBC Aviation Capital and its parent company, Sumitomo Corporation, past 900 aircraft.
Airbus Executive Vice President of Sales for Commercial Aircraft Benoît de Saint-Exupéry highlighted the long-standing relationship between the manufacturer and the lessor.
“We are honoured to stand with SMBC Aviation Capital as they place this order for additional A320neo family aircraft, the world’s most leased and most traded aircraft making it the benchmark for airlines, lessors and investors alike,” de Saint-Exupéry stated.
Boeing 737 MAX and CFM engine agreements
Concurrently, SMBC Aviation Capital announced a matching commitment with Boeing for 100 narrowbody aircraft. The lessor’s official statement detailed a split of 60 Boeing 737 MAX 10 and 40 Boeing 737 MAX 8 jets.
To power the newly ordered Airbus fleet, SMBC Aviation Capital also secured an agreement for up to 90 CFM International LEAP-1A engines.
SMBC Aviation Capital Chief Executive Officer Peter Barrett emphasized the necessity of securing long-term availability for the company’s airline clients.
“This significant new order will give our airline customers access to a continuous delivery pipeline of the latest technology A320neo family aircraft into the mid-2030s,” Barrett said.
He added that the order reflects the lessor’s confidence in the sustained demand for the A320neo family. Deliveries for the newly ordered Airbus aircraft are expected to commence in the first half of the 2030s.
AirPro News analysis
We view SMBC Aviation Capital’s balanced 200-aircraft acquisition as a direct response to the current manufacturing environment. By splitting the order evenly between the Airbus A320neo family and the Boeing 737 MAX, the lessor is effectively hedging its delivery risks. Industry reporting from the 2026 Farnborough International Airshow indicates that total dealmaking may fall short of the ambitious 800-aircraft expectations held by some analysts, largely due to ongoing production bottlenecks at both Airbus and Boeing.
In an environment where near-term delivery slots are virtually nonexistent, securing a pipeline that stretches into the mid-2030s is critical for major lessors. Airline customers are increasingly reliant on lessors to provide capacity growth and fleet renewal options when direct manufacturer orders face multi-year backlogs. The inclusion of 60 Boeing 737 MAX 10s and 65 Airbus A321neos also underscores a continued market shift toward the largest variants of both narrowbody families, maximizing seat capacity in slot-constrained airports.
Sources: Airbus
Photo Credit: Airbus
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