DALLAS — Cathay Pacific Airways (CX) and Avolon have agreed to sell and lease back nine Airbus A320 family jets. The deal involves a mix of A321neo and A320neo aircraft, scheduled for delivery in 2026 and 2027.

A leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. With a leaseback—also called a sale-leaseback—the details of the arrangement, such as the lease payments and lease duration, are made immediately after the sale of the asset.

This transaction will contribute to Cathay Pacific's goal of expanding connectivity at its home hub in Hong Kong. The A320neo family of aircraft offers significant fuel savings and CO2 reductions compared to previous-generation models.

Paul Geaney, the President and Chief Commercial Officer of Avolon, expressed his satisfaction with the sale and leaseback transaction with the Cathay Group. Geaney also acknowledged the significant rebound of passenger traffic in and out of Hong Kong this year and emphasized that these aircraft will play a crucial role in supporting the Cathay Group's fleet strategy and facilitating future expansion.

Avolon, an aircraft leasing and management company, currently has 101 A320neo family aircraft in its fleet and has a substantial order book for an additional 192 aircraft.

As of June 2023, the Cathay Group operates a fleet of 225 aircraft and serves over 75 passenger and cargo destinations worldwide, with additional destinations covered through codeshare agreements.

Featured image: Cathay Pacific/Avolon