Published: Thu, November 16, 2017
Economy | By Melissa Porter

Airbus in record 430 plane deal with budget airline backer Franke

Airbus in record 430 plane deal with budget airline backer Franke

Airbus revealed its largest single announcement ever this morning - a $49.5 billion deal with Indigo Partners to purchase 430 aircraft in its A320neo family, described as Airbus' largest ever single announcement.

Clark suggested that either Emirates or discount carrier flydubai, which is also owned by the Dubai government, could be interested in a mid-sized jet that Boeing is considering developing.

Chicago-based Boeing and Ethiopian made the announcement Tuesday at the biennial Dubai Air Show, which continues through Thursday.

Although the order - for 273 A320neos and 157 A321neos - has a list value of nearly $50bn, Indigo is unlikely to pay anywhere near as much.

The company also announced an order for four 777 freighters from Ethiopian Airlines in a deal valued at over $1.3 billion at list prices.

The airline had announced orders for 288 planes as of the end of October.

"Whether it is in flydubai. or in Emirates, with the carriers working far closer than they have been for a long time, would it fit?" Altogether, the 225 aircraft have a total value of $27 billion at list prices. They'll complement FlyDubai's fleet of Boeing 737s and keeps them a Boeing-only shop, something Airbus no doubt had hoped to change.

Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of flydubai, said the order underlines the success of "flydubai's founding vision helping to strengthen trade and tourism links across its network and has contributed to the enhanced connectivity of Dubai's aviation hub".

Similarly, Airbus could see yet more orders before the year is out: this week it signed a provisional agreement with Kuwaiti company Wataniya Airways - which operates medium-haul flights across Europe and the Middle East - for a possible order of 25A320neo jets.

The Franke deal also marks a dramatic swan-song for Airbus sales chief John Leahy, who is due to retire in the coming months after holding the job since 1994.

The preliminary deal for A320neo narrowbody jets was signed at the Dubai Airshow and offers a major boost to Airbus, which has lagged archrival Boeing in deals this year.

"It would have been great relief", the analyst said.

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