Airbus to Sell 430 Planes to Indigo for $49.5 Billion

16 November, 2017, 02:18 | Author: Franklin Nunez
  • Reports Airbus on verge of a signing deal to sell 430 A320's to US based investor Indigo Partners

Similarly, Airbus could see yet more orders before the year is out: this week it signed a provisional agreement with Kuwaiti company Wataniya Airways - which operates medium-haul flights across Europe and the Middle East - for a possible order of 25A320neo jets.

The order comprises of 273 A320neos and 157 A321neos and came as a surprise to industry observers after the failure of Airbus to secure a further deal from Emirates at the airshow for more A380 aircraft.

The blockbuster finale to the main part of the November 12-16 show lifted a despondent mood that had settled over the Airbus chalet when a deal for A380 superjumbos collapsed on day one.

The American manufacturer won another deal from Fly Dubai, the city's low-priced carrier, for 225 737MAX jets worth $27 billion on Wednesday.

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Emirates has taken delivery of 100 aircraft and has total order book of 142 units.

Buyers typically receive discounts of 40% to 60% on the list prices, but can get bigger reductions for huge deals.

For the Government of Dubai, the 265 jets its airlines agreed to buy from America's largest industrial exporter is a not-so-subtle show of the Emirate's impact on the U.S. economy. The agreement puts pan-European Airbus ahead of U.S. rival Boeing in the battle to sell the most aircraft at the Dubai event.

"It's one of the few occasions where you can truly say it's the end of an era", Teal Group analyst Richard Aboulafia said of Leahy's retirement.

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AerCap is the world's largest lessor of the Airbus A320neo; and the largest customer of the Boeing 787, with 116 on order and owned.

"This significant commitment for 430 additional aircraft underscores our optimistic view of the growth potential of our family of low-priced airlines, as well as our confidence in the A320neo Family as a platform for that growth", said Indigo Partners Managing Partner Bill Franke.

The agreement signed by the aviation company includes the rights to turn up the 787-9s of the aircraft, providing the airline increased flexibility for the global network and future fleet it envisages to command in the coming years.

The A320neo and A321neo jets feature new generation engines that use 15 percent less fuel compared to their peers.

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It is managed by William Franke, a pioneer of the cheap tickets and high fees airline business model that has spread overseas and is growing in the US.

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