Saudi leasing company Avilase is taking 22 Airbus A350F cargo jets as part of orders for up to 77 aircraft.
The deal also covers the 55 A320Neo-Family model, a mix of A320Neos and A321Neos, but not the long-range XLR.
Aircraft delivery begins in 2030 and runs until 2033.
Avilease disclosed the contract on the first day of the Paris Air Show, marking its first direct order with European planes.
Lenders appeared three years ago as part of the Saudi government's efforts as part of a broad strategic economic programme for the Kingdom.
According to Avilase CEO Edward O'Byrne, the lessor, which appeared three years ago, assembled a portfolio of 200 aircraft leased to 50 airlines.
In addition to financial inputs from shareholders, it also raised approximately $6 billion in capital.
“We work very hard with local stakeholders to create a strong and vibrant aviation ecosystem,” Ovillund says. The government added that it “want to attract as many people as possible to the kingdom.”
He says Avilase has worked with stakeholders and Saudi regulator GACA over the past year to look into different fleet options.
O'Byrne says the lender has chosen the A350F and A320Neo families. The single-aisle ranges, he adds, “Aircraft leasing company bread and butter.”
No decisions have been made regarding the single-isle engine.
He says the A350F “appears on the top” but the competition was close. The cargo ship sector has a “huge retirement wave” and the market needs “beyond (the kingdom).”
Avilease's order follows the initial direct agreement with Air Flammer, who signed up to 30 Boeing 737 Max 8S earlier this year.
O'Byrne says that direct “speculative” orders with the aircraft manufacturers have become the “fourth prong” of the company's acquisition strategy. Mergers such as sales and leasebacks, deals with other lessors such as Avolon, and standard charters.
He says that as a result, lenders have a “complete toolbox” that deploys capital.
Avilease has an ambitious growth plan to build a $20 billion balance sheet by the end of the decade, with O'Byrne saying the lender is “two years before planned.”
