(Yicai) Oct. 12 -- Avolon Holdings, a unit of one of China's biggest aircraft leasers Bohai Leasing, has ordered 250 next-generation planes from Airbus and Boeing worth around CNY314.3 billion (USD46.7 billion), amid manufacturers' lengthy delivery cycles resulting in leading aircraft leasing firms locking in new capacity in advance to reserve resources for future fleet expansion and renewal.

Avolon signed a deal to purchase 140 737 Max family jets from Boeing for up to USD27 billion, with deliveries scheduled through the end of 2036, it announced on Oct. 9. In addition, it ordered 75 aircraft from Airbus' A320neo family and 35 from the A330neo family, which are expected to be delivered by the end of 2035.

The Airbus deal includes an option for 100 more planes that can bring the total order to 150 A320neo family aircraft worth up to USD18.7 billion and 60 A330neo family jets worth up to USD17.8 billion, Avolon pointed out.

This is the largest combined order Avolon has ever placed with Airbus and Boeing, as well as one of the largest single new orders by an aircraft lessor in the past five years. The value of the two orders is based on the planes' list prices, with aircraft manufacturers usually negotiating final prices based on order size, customer relationships, delivery arrangements, and other factors.

Avolon had total assets of USD34.4 billion as of the end of last year, while logging an annual revenue of USD3 billion. Bohai Leasing's assets topped CNY249.9 billion and income reached CNY52.9 billion (USD7.9 billion) in the same period. The potential order is equivalent to about 1.8 times Bohai Leasing's total assets and 8.5 times its annual revenue, and 1.8 times Avolon's total assets and 21 times its annual revenue.

However, Avolon said it will make advance payments for the aircraft in installments according to delivery progress, with the remaining balance paid upon delivery, meaning it does not need to raise cash in the short term.

Calculated at list prices, the value of assets Bohai Leasing buys within one year will exceed 30 percent of its most recently audited total assets, so the relevant proposal still requires approval by a special resolution at a shareholders' meeting, the Beijing-based company pointed out.

Bohai Leasing holds a 70 percent stake in Avolon, with Japan's ORIX Group owning the rest through its aircraft-leasing subsidiary ORIX Aviation.

Shares of Bohai Leasing [SHE: 000415] rose 1.5 percent to CNY4.07 (61 US cents) apiece as of 11.20 a.m. in Shenzhen today.

Editor: Martin Kadiev