The Strategist

Airbus receives the largest order in its history

11/15/2017 - 14:10

American investment fund Indigo Partners will buy 430 aircraft from the family A320neo from the air manufacturer for $ 50 billion. The liners will be available to four budget airlines.

The French aircraft construction concern Airbus received the largest order in its history. It will deliver 430 medium-range airplanes from the A320neo family to four budget airlines - American Frontier Airlines, Chilean JetSMART, Mexican Volaris and Hungarian Wizz Air, according to a statement on the Airbus website.

A deal worth almost $ 50 billion will be carried out through the American investment fund Indigo Partners, which controls or owns shares in the airlines. The parties signed an agreement on intentions at the international aerospace exhibition in Dubai.

"Along with existing orders for Airbus A320 family, the new agreement will make Indigo Partners one of the largest customers of narrow-bodied Airbus aircraft in the world," the press release of the airline says. Previously, the US investment fund has already ordered Airbus 427 aircraft of this family.

Earlier, it was reported that the net profit of the European aircraft construction concern Airbus Group in the third quarter of 2017 increased almost 7 times yoy to 348 million euros.

Earnings per share amounted to 0.45 euros after 0.07 euros in July-September 2016. Quarterly revenue increased by 2% compared to the same period last year to 14.24 billion euros.

The company's net profit for the first 9 months of 2017 increased by 2.3% in annual terms and reached 1.851 billion euros. Earnings per share were 2.38 euros compared to 2.33 euros a year earlier. Revenue for these nine months increased by 0.6% to 42.953 billion euros.

The volume of orders accepted amounted to 50.8 billion euros for the first 9 months, while the figure was 73.2 billion euros a year earlier. At the same time, the order book as of September 30, 2017 was estimated at 945 billion euros. The company received orders for 271 aircraft for January-September.

The Airbus Group is one of the leaders in the aerospace, defense and related sectors, uniting three key divisions - Airbus, Airbus Defense and Space and Airbus Helicopters.