Air China, Shenzhen Airlines, and Hainan Airlines Plan to Purchase 95 Airbus Jets with a List Price of About 17.8 Billion US Dollars

Avolon has announced a firm order for 110 Airbus jets, comprising 75 A320neo family aircraft and 35 A330-900s, with options for a further 100 aircraft pending Bohai Leasing shareholder approval. The commitment from the leading lessor reinforces long-term demand visibility for Airbus's single-aisle and widebody programmes and deepens its presence in the leasing market. The order, once Bohai Leasing approves it, supports the long-term demand story but does not materially change the most immediate swing factors, which remain engine and supply chain reliability on the A320 family and the impact of elevated investment and Spirit AeroSystems integration costs on near-term free cash flow. Alongside the Avolon deal, Airbus Defence and Space has completed the first 32 new OneWeb satellites for Eutelsat, underlining the push to build a more meaningful second profit pillar outside commercial jets. Airbus's narrative projects 107.5 billion euros in revenue and 9.3 billion euros in earnings by 2029, requiring 11.8% yearly revenue growth and about a 3.4 billion euro earnings increase from 5.9 billion euros today, while some of the most optimistic analysts were already pencilling in about 122.6 billion euros of revenue and 10.4 billion euros of earnings by 2029.

Southwest Airlines is leaning toward Boeing's 787 Dreamliner as its first widebody jet as it weighs launching long-haul international flights, Reuters reported, citing people familiar with the carrier's fleet planning. No final aircraft decision has been made, the report added, and the choice would ultimately rest with Southwest's board, which last year formed a Fleet Oversight Committee to help oversee the company's aircraft fleet acquisition strategy. Southwest has not publicly named an aircraft for long-haul flying; in September, CFO Tom Doxey said long-haul international service was among a range of options under consideration but that no decision had been made. According to the report, Southwest has contemplated a fleet of dozens of 787s and has also examined how quickly it could obtain aircraft, including through lessors or the secondary market, though it was not clear which 787 variant it is considering or whether any leasing arrangements have been made. Southwest did not directly address questions about the 787, saying in a statement, "We do not have any news forthcoming related to our fleet plans," the report added.

Bohai Leasing disclosed two major commercial orders on the evening of October 9. Its controlling subsidiary Avolon, through Avolon Aerospace Leasing Limited, plans to purchase multiple aircraft from both Boeing and Airbus, with total order value not exceeding RMB 424.58 billion. Among them, AALL plans to purchase 140 B737 MAX series aircraft from Boeing, with a total value not exceeding USD 26.953 billion based on Boeing's published list prices, and Boeing will complete deliveries gradually by the end of 2036. On the same day, AALL, CIT Aerospace LLC, and CIT Aerospace International Unlimited Company signed an agreement with Airbus to purchase 110 new-generation technology aircraft, including 75 A320NEO series and 35 A330NEO series aircraft, while also obtaining purchase options for 100 additional new-generation technology aircraft. If all purchase options are exercised, the total value of Airbus-related orders will not exceed USD 36.491 billion, with deliveries expected to be completed gradually by the end of 2035. Based on the latest exchange rate of USD 1 to RMB 6.6922, the total value of the above orders does not exceed RMB 424.58 billion. The funds for this purchase come from Avolon's own funds, self-raised funds, and future operating cash flow. As of the end of the second quarter of 2026, Avolon's total available liquidity was approximately USD 12 billion. Bohai Leasing stated that this transaction is conducive to enhancing the company's aircraft order backlog, bargaining power, and competitiveness in the global aircraft leasing market. As of the end of the third quarter of 2026, Avolon's fleet size was 1,092 aircraft, including 561 owned aircraft, 32 managed aircraft, and 499 aircraft on order, excluding the quantity from this order.

Boeing has secured an undefinitized contract worth about US$14.7b from Lockheed Martin to scale PAC-3 Missile Segment Enhancement seeker production over a seven year period. The award comes as Boeing shares closed at US$188.32, with a 90 day share price return down 15.59%, a year to date share price return down 17.32%, and a one year total shareholder return down 16.42%. On the operating side, Commercial Airplanes narrowed its operating margin from negative 5.1% to negative 2.7% on 171 deliveries against 150, while the 737 is transitioning to 47 per month from 38 a year ago, with a fourth Everett line activated in July and management targeting 52 next year. A Simply Wall St narrative pegs Boeing's fair value at $160.01, implying the stock is 17.7% overvalued, while the firm's discounted cash flow model points to a future cash flow value of $376.49.

Textron Aviation Inc., a Textron Inc. company, announced that the Paraguayan Air Force has become the first South American military operator of the Cessna SkyCourier turboprop, marking another milestone for the aircraft's multi-mission versatility. The aircraft, funded by Itaipu Binacional, a binational entity operated by the governments of Brazil and Paraguay, joins the force's existing fleet of Cessna Grand Caravan aircraft. Bob Gibbs, vice president of Defense & Special Mission Sales at Textron Aviation, said the SkyCourier delivers unmatched reliability and mission flexibility, enabling the Paraguayan Air Force to reach remote regions with confidence. The high-wing, twin-engine turboprop is designed for cost-effective maintenance and can be flown by a single pilot, enhancing the Air Force's capability to perform medical evacuations, transport patients and provide rapid humanitarian aid during disaster relief efforts. The SkyCourier is powered by two Pratt & Whitney Canada PT6A-65SC turboprop engines and features a maximum cruise speed of more than 200 KTAS and a 900 nautical-mile maximum range.