Avolon signs $1.3 billion aircraft deal with Hainan

Aircraft lessor Avolon committed to leasing five B787-9 craft to Chinese carrier, Hainan Airlines, in a $1.3 billion deal, during the third quarter of the year.

The Dublin-based company recently agreed a sale to Chinese operator Bohai Leasing for $31 a-share, valuing the business at $7.6 billion.

In an update on Tuesday, Avolon said that it has delivered eight craft worth $346 million over the third quarter and sold a further seven.

During the period, it committed to leasing five B787-9s to Hainan, subject to the Bohai deal going through. The transaction is valued at $1.3 billion.

Its total commitments for delivery next year now stand at 29 aircraft, the company said.

It also saw continued momentum in sales, with seven craft sold in the third quarter and $180 million worth of craft under letters of intent for disposal this year.

It has already signed letters of intent for the sale of $800 million worth of craft in 2016.