Tokyo Century announced that its US subsidiary ACG will purchase 75 Airbus A320neo-series aircraft. The total list price is approximately ¥1.856 trillion, and delivery is expected to take place from 2032 to 2035.
On the 16th, Tokyo Century announced that its US subsidiary ACG will purchase 75 Airbus A320neo-series narrow-body aircraft. The total list price of the aircraft is approximately ¥1.856 trillion, and the company plans to increase its fleet in anticipation of growing global passenger demand.
ACG CEO Thomas Baker said the large order would be the biggest transaction in ACG's approximately 40-year history. He also disclosed that the actual acquisition price would not be disclosed due to confidentiality obligations.
Tokyo Century announced in August that it would transfer 50% of the shares in ACG's parent company to ITOCHU Corporation, which is scheduled to acquire them for approximately ¥300 billion in November. As a result, ACG is expected to cease being a consolidated subsidiary of Tokyo Century and become an equity-method affiliate.
In the aviation industry, demand for replacement aircraft with superior fuel efficiency has remained strong against the backdrop of recovering passenger demand following the COVID-19 pandemic. ACG's large order is viewed as indicating that lessors are factoring in medium- to long-term growth in aviation demand.