Boeing and SMBC Aviation Capital (SMBC) have agreed a deal that will see the Japanese-owned aircraft lessor ordering 25 market-leading 737-8 jets, increasing its backlog to 81 737 Max jets.

With travel demand surging around the globe and intra-Asian travel recovering to pre-pandemic levels, lessors are looking to increase their single-aisle portfolios to provide airlines with more fuel-efficient jets capable of operating across various route networks. 

The 737-8 jet seats 162 to 210 passengers depending on configuration, has a range of 3,500 nautical miles and operates profitably on short- and medium-haul routes. Based on current list prices the deal could be worth in the region of US$3.9 billion.

“As one of the industry’s leading airplane lessors, SMBC’s decision to increase its 737 MAX backlog with an order for 25 737-8s shows its confidence in the value the airplane brings to its airline customers,” says Stan Deal, president and CEO of Boeing Commercial Airplanes. “The 737-8’s incredible versatility and unrivalled fuel efficiency makes it a key asset for the leasing community in its drive to help airlines achieve sustainability and efficiency goals.”

Peter Barrett, CEO of SMBC adds: “This transaction demonstrates our commitment to provide our customers with the latest technology, most fuel-efficient aircraft, as they seek to meet their own sustainability objectives and reduce operating costs."

Based in Dublin, Ireland, SMBC is the second-largest aircraft operating lease company globally by number of aircraft, with an owned, managed and committed fleet of just under 900 aircraft.

It is owned by a consortium of Japanese institutions – Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Finance and Leasing Company, and Sumitomo Corporation.