Boeing Lands 50-Aircraft Order from Aviation Capital Group as Leasing Giant Doubles Down on MAX Family
Seattle, United States — Boeing secured a significant vote of confidence in its narrowbody program on Tuesday when Aviation Capital Group finalized an order for 50 additional 737 MAX jets, a deal that positions the California-based lessor as the largest holder of 737-10 commitments in the global leasing sector.
The transaction, which covers 25 of the smaller 737-8 variant and 25 of the larger 737-10 model, pushes ACG’s total MAX order book to 121 aircraft. Deliveries are scheduled to stretch from 2032 through 2033, with the entire order powered by CFM International’s LEAP-1B engines. Financial terms of the agreement were not disclosed by either party.
Thomas Baker, chief executive of ACG, characterized the purchase as integral to the company’s expansion strategy. He noted that the order would allow the lessor to offer airline customers a continuous stream of delivery positions spanning from 2026 through 2033, providing flexibility across both MAX variants to accommodate differing operational requirements.
Brad McMullen, Boeing’s senior vice president of commercial sales and marketing, highlighted the order’s significance for the still-uncertified 737-10, describing ACG’s commitment as a reflection of strong global demand for the largest member of the MAX family. The lessor now holds 50 firm orders for the variant, cementing its position ahead of competitors in the leasing industry.
The timing of the announcement carries particular weight for Boeing. The American manufacturer has spent years working to restore confidence in its 737 program following two fatal crashes involving MAX aircraft in 2018 and 2019 that killed 346 people and triggered a 20-month global grounding. More recently, a door plug blowout on an Alaska Airlines MAX 9 in January 2024 renewed scrutiny of Boeing’s production quality and safety culture.
Yet airlines and lessors have continued to place substantial orders. Earlier this month, Alaska Airlines announced its largest aircraft purchase ever, committing to 105 737-10 jets alongside five 787 Dreamliners. The sustained demand reflects the industry’s limited options in the high-capacity narrowbody segment, where Airbus production of its competing A321neo remains heavily booked through the end of the decade.
Gael Meheust, president and chief executive of CFM International, noted that ACG’s repeat order demonstrates confidence in the efficiency and reliability of LEAP-powered aircraft. The engine manufacturer continues to invest in durability improvements for the powerplant, which delivers approximately 20 percent better fuel efficiency and a 50 percent smaller noise footprint compared with predecessor aircraft types.
ACG manages a portfolio of roughly 470 aircraft leased to approximately 90 airlines across 50 countries. The company, founded in 1989 and now a wholly owned subsidiary of Tokyo Century Corporation, has built its fleet primarily around narrowbody jets from Boeing and Airbus, including the A220 and A320 family alongside various 737 variants.
The latest order comes as leasing companies collectively account for nearly 1,300 737 MAX commitments, representing approximately one-fifth of the total program backlog. The sector’s appetite for the type underscores the critical role lessors play in financing global fleet growth, particularly as airlines seek to modernize aging equipment with more fuel-efficient aircraft.
Boeing’s 737-10 Inches Closer to Certification as FAA Greenlights Final Testing Phase
Boeing’s path toward certification of its largest single-aisle jet advanced last month when the Federal Aviation Administration approved the start of Phase 2 flight testing for the 737 MAX 10, marking the first substantive progress in years for a program plagued by technical setbacks and regulatory delays.
The authorization, granted quietly before Christmas 2025, allows Boeing to proceed with FAA-supervised evaluations of critical aircraft systems including avionics, propulsion, and flight controls. Phase 2 represents the final hurdle in the Type Inspection Authorization process before the agency can issue type certification.
But industry observers urge caution. While the milestone signals momentum, significant obstacles remain. An unresolved engine anti-icing issue continues to require additional modifications, and the FAA has begun a formal review of Boeing’s redesigned crew alerting system — a congressionally mandated safety upgrade stemming from the post-crash reforms that followed the Lion Air and Ethiopian Airlines disasters.
The MAX 10 first flew in June 2021, meaning the certification campaign has now stretched beyond four and a half years. Boeing executives, including chief executive Kelly Ortberg, have expressed hope that both the MAX 10 and its smaller sibling, the MAX 7, will receive approval sometime in 2026. Analysts consider late 2026 certification optimistic, with entry into service potentially slipping into 2027.
The delays carry substantial financial implications. Boeing holds more than 1,290 orders for the MAX 10 from carriers including United Airlines, Delta Air Lines, Southwest Airlines, and Alaska Airlines. At list prices approaching $130 million per aircraft, the backlog represents tens of billions in potential revenue that remains unrealized until deliveries can begin.
Southwest, the dominant MAX 7 customer, now expects that smaller variant to receive certification by August 2026, with commercial service beginning early the following year. The MAX 10 remains further behind, with no firm timeline from the FAA.
The 737-10 is designed to seat up to 230 passengers in a single-class configuration, positioning it as Boeing’s direct response to the Airbus A321neo. The European competitor has dominated the high-capacity narrowbody segment for more than a decade, leaving airlines with few alternatives as they seek efficient aircraft for high-density domestic and medium-haul routes.
Boeing Poised to Report Strongest Delivery Year Since 2018 Amid Production Recovery
Boeing appears set to confirm its highest annual delivery total in seven years when it releases official 2025 figures, with preliminary data suggesting the manufacturer handed over approximately 600 commercial aircraft as production stabilized following years of crisis.
Industry tracking firms estimate Boeing delivered at least 63 aircraft in December alone, pushing the full-year count past the 600-unit threshold for only the ninth time in company history. The total represents a 69 percent increase compared with 2024, when deliveries collapsed to just 318 jets amid labor strikes, intensified quality inspections, and ongoing regulatory oversight.
The rebound signals a turning point for a manufacturer that has struggled since the dual MAX crashes in 2018 and 2019, the subsequent global grounding, pandemic-related production cuts, and the January 2024 door plug incident that triggered fresh scrutiny from the FAA.
Under Ortberg’s leadership, Boeing has prioritized manufacturing discipline over speed, cutting so-called traveled work — the practice of completing assembly tasks out of sequence — and implementing additional training requirements. The National Transportation Safety Board’s investigation into the Alaska Airlines incident cited inadequate training and management oversight among the factors contributing to quality failures.
Boeing also completed its reacquisition of Spirit AeroSystems in December, bringing the fuselage supplier back under direct company control two decades after spinning off the operation. The move gives Boeing greater oversight of a critical link in its supply chain that had been implicated in production quality problems.
Still, the manufacturer continues to trail its European rival. Airbus delivered 793 commercial aircraft in 2025, meeting a revised target of 790 units after supply chain constraints forced the company to scale back earlier ambitions of reaching 820 deliveries. Engine availability and buyer-furnished equipment shortages hampered Airbus output throughout the year.
Both manufacturers enter 2026 with substantial backlogs and plans to increase production. The FAA approved Boeing to raise 737 MAX output from 38 to 42 aircraft monthly in October 2025, while Airbus targets 75 A320 family jets per month by 2027. Achieving those goals will depend on resolving persistent supply chain bottlenecks that have constrained the entire industry since the pandemic.
Boeing plans to outline its 2026 production targets when it reports fourth-quarter earnings on January 27.
Lessors Underpin Global Fleet Expansion as Airlines Chase Fuel Efficiency
The aviation leasing sector has emerged as a critical engine of fleet growth, financing an increasingly large share of the world’s commercial aircraft as airlines seek capital-efficient paths to modernization.
With ACG’s latest order, lessors have now committed to nearly 1,300 737 MAX jets — roughly one-fifth of Boeing’s total program backlog. Similar patterns have emerged at Airbus, where leasing companies account for substantial portions of A320neo family orders.
The model benefits both sides of the transaction. Airlines gain access to modern, fuel-efficient equipment without the heavy capital expenditure of outright ownership, while lessors build diversified portfolios that generate steady returns through long-term lease agreements. For manufacturers, leasing company orders provide production visibility extending years into the future.
ACG’s presence across 50 countries and relationships with approximately 90 airlines illustrate the global reach of major lessors. The company’s fleet composition, weighted toward narrowbody jets from both Boeing and Airbus, reflects broader industry trends favoring single-aisle aircraft on short and medium-haul routes where fuel efficiency delivers the greatest cost savings.
The sector’s confidence in the MAX family, despite the program’s troubled history, underscores a fundamental market reality: alternatives are limited. Airbus production remains heavily sold out, and no other manufacturer has yet produced a competitive offering at comparable scale. Airlines and lessors alike are betting that Boeing will ultimately resolve its certification and quality challenges, allowing the MAX to fulfill its commercial potential.
As the aerospace industry navigates certification hurdles, production ramp-ups, and ongoing supply chain constraints, the flow of orders from both airlines and leasing companies suggests enduring confidence in air travel growth. But whether manufacturers can translate that confidence into timely deliveries remains the defining question of 2026.
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