Andrew Doyle/MUNICH
SAirGroup leasing subsidiary Flightlease and GATX of the USA are to supply the bulk of the 21 Boeing 737-800s being acquired by South African Airways (SAA) to replace its Airbus A320s, A300s and Boeing 767s on medium-haul routes.
The decision by SAA in favour of the Next Generation 737 follows a fierce battle between Boeing, Airbus - offering its A320 family - and several leading leasing companies.
SAA chief executive Coleman Andrews says the airline secured "highly attractive purchase prices and support packages which- equal or better those obtained by substantially larger airlines".
The South African flag carrier, 20%-owned by SAirGroup, will become the first airline to operate the 737-800 with blended winglets when it begins taking delivery of the 157-seat twinjets at the rate of one a month from May.
Flightlease chief executive Hans Jörg Hunziker says the Swiss company expects to finalise a block order for 23 737-800s with Boeing during the next few weeks. Five of these will be purchased directly by SAA, it is understood, in exchange for the two remaining deferred 777 orders the airline holds.
Eight will be leased to SAA by Flightlease, while the remaining 10 will be acquired by the GATX Flightlease joint-venture company for placement with other customers. Another eight 737-800s will be leased to SAA separately by GATX from an existing order.
As part of the deal, GATX Flightlease has agreed to buy back SAA's seven A320s, while Boeing and CFMI have agreed to take its three Boeing 767s and eight A300s.
The 737-800s will be operated by SAA alongside its 737-200s by a single pool of pilots on domestic routes, and to international destinations in southern, west and east Africa. The airline hold options on a further 20 737s.
Hunziker says that, later this year, Flightlease will assist SAA in launching a study into its long-haul fleet strategy, with the objective of reducing the number of 747 variants in operation.
Source: Flight International
