Plane maker Airbus has agreed a deal with US low-cost airline Indigo Partners for 430 jets. The Netherlands-based plane maker made the announcement Wednesday, following talks at the Dubai Air Show.
The deal represents the largest single order for Airbus planes by volume and comprises 273 A320neos and 157 A321neos, worth a combined $49.5 billion at list prices.
Airbus shares closed 0.35% higher Tuesday, to end at €83.54. Shares in rival Boeing, who was also reported to be doing good business at the air show, closed 2.36% higher at $261.03, in the US.
US low-cost carrier
The Airbus, Indigo Partners deal isn’t just good news for the airplane manufacturer, it will also double the stock of planes across the Indigo Partners low-cost carrier group.
“Indigo Partners have been a tremendous customer and supporter of the Airbus single-aisle fleet for many years,” said John Leahy, Airbus Chief Operating Officer Customers, Airbus Commercial Aircraft.
“An order for 430 aircraft is remarkable, but it’s particularly gratifying to all of us at Airbus when it comes from a group of airline professionals who know our products as well as the folks at Indigo Partners do.”
The following Indigo Partners airlines will benefit from the upgraded stock:
- Frontier Airlines
- Mexico-based, Volaris.
- European carrier Wizz Air Holdings Plc.
- New Chile-based airline, JetSmart.
Indigo Partners’ managing partner, Bill Franke agreed the deal with Airbus after he flew into the Dubai Air Show earlier Wednesday.
Orders boost for Airbus
The air show is proving a positive one for Airbus, who began the annual event lagging behind rival Boeing in the order department in 2017, so far.
Reports also show Egyptair has placed an order for 12 C-Series Bombardier Jets, with the prospect of a further order for more.
In addition, a separate deal for 175 jets from flyDubai, possibly to be split between Airbus and Boeing is also on the cards.