An Airbus Indigo jet order has been agreed between the Europen company and Indigo Partners of the USA. Airbus has been struggling of late, but at the 2017 Dubai Airshow, it all changed when it landed a jet order worth almost $50 billion. This is a massive aviation deal that has been made with the US private equity firm, Indigo Partners. The order is for 430 jets with a total worth of $49.5 billion.
Airbus Indigo Jet Order for 430 Aircraft for Four Indigo Partners Airlines
Bill Franke of Indigo Partners is a veteran airline investor with a good mind for the industry. He signed the preliminary order for 273 A320neos and 157 A321neos on Wednesday. This is a massive order in anybody’s language. The order is for aircraft destined for four different airlines in which Indigo has a stake. These airlines are Denver firm Frontier Airlines, JetSmart (a low-cost Chilean Airline), the Hungarian airline Wizz Air, and Mexico’s Volaris. They are all controlled by Indigo Partners.
Aircraft Final Cost Not Yet Revealed
The list price for the aircraft ordered in the Airbus Indigo jet order is $49.5 billion. However, according to Airbus, Indigo Partners did not pay the full price for the order. The final cost agreed has not been made public. This deal seals the end of John Leahy as Airbus sales chief. Prior to his retirement, he stated that the 430 aircraft “bulk order” would have no effect on the company’s current production rate.
Airbus has been behind the US firm Boeing regarding orders for jet aircraft lately, However, this is a huge order and it is sure to provide stability to the European planemaker. It was hurt by the $15 billion Emirates order which went to Boeing in spite of most analysts predicting the order would be given to Airbus.
Indigo Partners Order May Hurt Boeing
The Indigo Partners order has changed all that, and the order has placed Airbus once again ahead of Boeing. The EgyptAir issue between Boeing and Bombardier has been recently reported by us. While this may ultimately hurt Boeing, the Indigo Partners order may hit it even more.
Time will tell, but Airbus landing this huge jet order from US private equity firm Indigo Partners will certainly not please the US company. Nevertheless, the Airbus Indigo jet order has given Airbus a much needed boost one that Boeing will certainly notice!