FILE PHOTO: A passenger safety instruction card of Jet Airways Boeing 737 MAX 8 plane is pictured during its induction ceremony at the Chhatrapati Shivaji International airport in Mumbai, India, June 28, 2018. REUTERS/Abhirup Roy

DUBLIN (Reuters) – Aircraft lessor Avolon has cancelled an order for 75 Boeing (BA.N) 737 MAX planes that were due to be delivered by 2023 as it adjusts its order book to the industry disruption caused by the coronavirus pandemic, the Dublin-based firm said on Friday.

Avolon said it remained committed to the MAX aircraft, which has been grounded for the last year.

It also cancelled commitments for four Airbus (AIR.PA) A330neo aircraft and deferred delivery dates for an another 25 narrowbody aircraft to 2024 and beyond.

That will reduce its aircraft commitments between 2020 and 2023 to 165 aircraft from 284, “significantly reducing our near-term capital commitments,” Chief Executive Domhnal Slattery said in a statement.

Privately-held Avolon, the world’s third-biggest lessor of commercial jets, is 70%-owned by a subsidiary of Chinese conglomerate Hainan Group.

When Avolon struck a deal in 2017 for 75 MAX planes and an option on 20 more, it was valued at nearly $11 billion at list prices.

Reporting by Padraic Halpin and Conor Humphries; Editing by Mark Potter

Source Article