Leasing company, airlines order 160 Airbus aircraft

[News_Editor]

Leasing company, airlines order 160 Airbus aircraft

2011-11-15 21:25:59 GMT+7 (ICT)

DUBAI (BNO NEWS) -- A U.S.-based leasing company and two airlines have ordered a total of 160 Airbus aircraft in deals valued at a combined total of nearly $16 billion, the aircraft manufacturer announced at the Dubai Airshow on Tuesday.

Airbus said it signed a Memorandum of Understanding (MoU) with U.S. ultra low-cost carrier Spirit Airlines for 75 single-aisle aircraft, comprising 45 A320neo aircraft and 30 A320s. The aircraft are to be used on Spirit's markets in the United States, the Caribbean and Latin American.

"We are excited to expand our partnership with Airbus and grow our fleet into the next decade," said Spirit Airlines CEO Ben Baldanza. "Spirit Airlines' low fares require an efficient, reliable aircraft and the A320 Family, including the neo (new engine option), fits that model well."

Airbus also unexpectedly secured a firm contract with Qatar Airways for 50 A320neo aircraft and five additional A380s, just hours after dramatic announcements from Airbus and Qatar Airways that a scheduled press conference to announce the deal had been canceled because the talks had stalled.

"The order was not canceled, but it was halted," Qatar Airways CEO Akbar Al Baker was quoted as saying at the Dubai Airshow. "Airbus is still learning how to make airplanes and we will postpone the deal due to technical difficulties."

But hours later, Airbus released a joint press release which stated that Qatar's national airline had gone ahead with the deal. "It is with great pride that we are announcing this large order today including an additional five A380s," Airbus Chief Operating Officer of Customers, John Leahy, said. "We appreciate having built a unique relationship with our friends at Qatar Airways over the years."

In addition, U.S.-based global aircraft leasing company Aviation Capital Group (ACG) signed a purchase agreement for 30 A320neo Family aircraft. "We may have taken more time than other Leasing Companies to make the neo selection, but we wanted to test customer reaction, financial community acceptance and the fit within the ACG long term fleet plan - it passed with flying colors on all counts," said John Feren, Executive Vice President of Global Marketing at ACG.

According to Airbus average list prices, the three deals are worth more than $15.8 billion combined, although customers typically negotiate lower prices for large orders.

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