The Strategist

Airbus receives "mega order" from several airlines

11/15/2021 - 09:33

Several low-cost carriers have ordered 255 aircraft from Airbus. The deal is valued at more than $30bn without discounts.

Airbus received an order for 255 narrow-body aircraft from four airlines - JetSMART (Chile and Argentina), Frontier (USA), Wizz Air (Hungary) and Volaris (Mexico), according to a statement on the aircraft manufacturer's website. The agreement was concluded at the Dubai Airshow. All four airlines are part of the portfolio of investment company Indigo Partners.

Low-cost carrier Wizz Air will receive the largest number of planes: 75 A321neo and 27 A321XLR. The A321neo seats up to 220 passengers and can fly distances of up to 7,400 km. The total number of Airbus aircraft ordered by the four companies has risen to 1,145 with the new agreement, Airbus said.

Bloomberg called the deal a "mega-order", valued at more than $30bn without discounts. 

Airbus intends to significantly increase aircraft production in the coming years. The company told suppliers in May that it plans to produce 64 aircraft a month by the second quarter of 2023, a level higher than it was before the pandemic. Airbus contractors in October raised concerns that the aviation market, which has been hit hard by lockdowns and closed borders, may not support the manufacturer's plans.

On 13 November, Airbus forecasted that airlines, leasing companies and cargo carriers would buy more than 39,000 new aircraft by 2040. That estimate was only slightly lower than it was before the pandemic: Airbus had previously expected 39,200 orders in 2019-2038, Bloomberg noted.