Airbus signs record $50 billion order for 430 A320neos

dubai - European plane-maker bags order for 535 aircraft in three deals

Airbus on Wednesday secured the biggest-ever single order in its history for 430 A320neos, besides firming up orders for 90 aircraft of the same family, at the Dubai Air Show to stage a dramatic comeback after it was overrun by rival Boeing in winning new orders in the first three days.

The first deal inked with US investor Bill Franke, valued at $50 billion, was for the supply of medium-range A320 family of aircraft to US investment firm Indigo Partners, which is based in Phoenix, Arizona.

The second deal was with Dublin-based CDB Aviation Lease Finance DAC for 90 Airbus A320neo Family aircraft. The value of the deal was not disclosed, but is estimated to be well above $10 billion if the average unit price range of $116 million of the first deal is taken as a yardstick.

Franke's Indigo Partners has stakes in four airlines, including Frontier Airlines, Mexico's Volaris, Chilean carrier JetSmart and Hungary's Wizz Air.

"I welcome this new sign of confidence by major airline companies taking part in this unprecedented commercial deal," Airbus's chief operating officer Fabrice Bregier said.

Franke and John Leahy, Airbus chief operating officer, Customers, Airbus Commercial Aircraft, announced the 430 aircraft commitment, comprising 273 A320neos and 157 A321neos on the fourth day of the Airshow.

In a separate deal on Wednesday involving 15 Airbus 320neo, AerCap Holdings and Egyptair announced at the air show that they had reached agreement on the long-term operating lease of 15 Airbus A320neo aircraft. These aircraft are from AerCap's order book with Airbus and are scheduled to deliver in 2020. The value of the deal, although was not disclosed officially, is estimated to be above $2 billion.

The new Airbus-Indigo Partners agreement, when added to existing Airbus A320 Family orders, will make Indigo Partners one of the largest customers by order number in the world for the Airbus single-aisle aircraft family. Airlines in the Indigo Partners family previously have placed orders for 427 A320 Family aircraft.

"This significant commitment for 430 additional aircraft underscores our optimistic view of the growth potential of our family of low-cost airlines, as well as our confidence in the A320neo Family as a platform for that growth," said Franke. "Our airlines know that a great aircraft coupled with a great business plan will create value for our customers. We look forward to bringing comfort and low fares to more passengers around the world as Wizz Air, Volaris, JetSMART and Frontier continue to expand."

"Indigo Partners have been a tremendous customer and supporter of the Airbus single-aisle fleet for many years. An order for 430 aircraft is remarkable, but it's particularly gratifying to all of us at Airbus when it comes from a group of airline professionals who know our products as well as the folks at Indigo Partners do. We are proud to augment their airline fleets in Latin America, North America and Europe with the single-aisle aircraft that offers the lowest operating costs, longest range and most spacious cabin: the A320neo Family," said Leahy.

Also present at the announcement were Enrique Beltranena, CEO of Volaris; Barry Biffle, CEO of Frontier Airlines; Estuardo Ortiz, CEO of JetSMART; and József Váradi, CEO of Wizz Air.

Franke indicated that engine selections would be made and announced at a later date.

Airbus said the agreement for 90 320-neos with CDB Aviation was reached in two steps: an original purchase agreement signed in 2014 for 45 A320neo Family aircraft, which remained undisclosed to date, and the firming up of the memorandum of understanding announced at the 2017 Le Bourget Paris Airshow in June 2017 for an additional 30 A320neo and 15 A321neo aircraft.

The European plane-maker said the A320neo Family incorporates the very latest technologies, including new generation engines and Sharklet wing-tip devices, which together will deliver 20 per cent fuel savings by 2020. With more than 5,200 orders received from 95 customers since its launch in 2010, the A320neo Family has captured nearly 60 per cent market share.

- issacjohn@khaleejtimes.com