Airbus clinches historic $50bn order
Airbus has clinched its largest ever order from Indigo Partners, the owner of four ultra low-cost carriers, at this year's Dubai Air Show, in what some commentators see as a vindication of that business model.
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Indigo Partners, the owner of US-based Frontier Airlines, Chile's JetSMART, Mexico's Volaris and Hungary's WizzAir, placed an order for 430 A320 neo aircraft with a total list price of $49.5bn.
Bill Franke, a managing partner at Indigo Partners, highlighted the positive outlook for its low-cost airlines, touting the A320 neo family of aircraft as the optimal platform for its growth strategy.
"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."
Combined with the newest engines and Sharklet wing-tip devices, the A320 neo family was expected to deliver fuel savings of up to 20% by 2020.
However, Indigo said the engine selections for the aircraft would be made and announced at a later date.
More specifically, Indigo's order comprised 273 A320 neo jets and 157 of the bigger A321neo model.
By individual airlines, the split was 100 A320neo and 34 A321neo for Frontier, 56 A320neo and 14 A321neo for JetSMART, 46 A320neo and 34 A321neo for Volaris and 72 A320neo and 74 A321neo for WizzAir.
Critically for Airbus, Wednesday's historic order meant its A320 jets had made off with almost 60% of the market since their launch in 2010.
As of 1036 GMT shares of Airbus were 2.85% higher to €85.92.