By Eric Pfanner
TOKYO--SMBC Aviation Capital Ltd., an aircraft leasing business
controlled by Sumitomo Mitsui Financial Group Inc. (8316.TO) of
Japan, said Monday it had ordered $8.5 billion of aircraft from
Boeing Co. (BA) to serve an expected surge in demand for air travel
in Asia.
The order is for 80 Boeing 737 Max 8 single-aisle jets, a new
version of the aircraft manufacturer's longtime workhorse for
short- and medium-haul flights. Executives of SMBC and Boeing said
they expected much of the demand for the planes to come from
low-cost carriers, which are gaining ground in Asia after growing
rapidly in the U.S. and Europe.
Peter Barrett, chief executive of SMBC Aviation, which is based
in Dublin, said at a news conference that the order was the largest
purchase of the 737 Max by a leasing company.
The deal helps shore up Boeing's position in Japan, historically
one of the company's strongest markets, as rival Airbus Group NV
(AIR.FR) makes inroads. In July, SMBC Aviation said it was buying
115 single-aisle aircraft from Airbus for $11.8 billion.
Sumitomo Mitsui has been expanding its aircraft leasing business
in an effort to look for new areas of growth beyond traditional
lending, a stagnant business in Japan.
Write to Eric Pfanner at eric.pfanner@@wsj.com
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