Avolon, a global aviation finance company, has signed a binding agreement for its order of 20 new A330neo aircraft from Airbus. The order firms up a memorandum of understanding signed at the Paris Airshow in June. The new aircraft are scheduled to be delivered between 2025 and 2028.

Avolon was a launch customer for the A330neo program in 2014 and is enjoying strong customer demand for additional widebody aircraft having fully placed its current orderbook. With over 1,400 A330ceo aircraft in operation, airlines are considering options to upgrade to the A330neo aircraft, which has an increased range of range of over 13,300km (7,200 nautical miles) and 25 percent lower fuel consumption and CO2 emissions.

The agreement with Airbus also confirms that 50 of the A320neo aircraft Avolon has on order with Airbus will convert to the larger A321neo model.

Andy Cronin, CEO of Avolon, said, “We see a high level of widebody demand within the delivery window for these aircraft. With our existing widebody pipeline already placed, these new aircraft will support our future growth plans and allow us to provide options for carriers looking to replace older A330ceo aircraft with the more fuel efficient A330neo. The order builds on our strong relationship with Airbus as a launch customer for the A330neo, and our position as the leading lessor for this aircraft type.”

Christian Scherer, Chief Commercial Officer and Head of International at Airbus, said, “It’s fantastic to see Avolon once again commit additional investment in the A330neo aircraft and lead the lessor market reordering widebody aircraft. Avolon’s vision and timing could not be better with this commitment for a further 20 aircraft to its portfolio. Avolon will benefit from the strong wave of growth and replacements that we currently observe across all markets, and we welcome our continuing partnership with them.”