Air Arabia Orders 120 Airbus Jets in $14 Billion Blockbuster
Agreement includes 73 A320neo, with a mix of the larger A321neo and long-distance A321XLR variants making up the remainder.
(Bloomberg) -- Air Arabia PJSC ordered 120 Airbus SE narrow-body jets worth about $14 billion at list prices, as the European planemaker scored its second blockbuster order of the day at the Dubai Airshow.
The agreement includes 73 of the flagship A320neo, with a mix of the larger A321neo and long-distance A321XLR variants making up the remainder for Air Arabia, which is already an Airbus operator.
“The A321 is a game-changer for Air Arabia’s business,” Chief Executive Officer Adel Ali told reporters. He said the planes would allow the discount airline to expand in southeast Asia and Africa.
The transaction marks the latest victory for Airbus as U.S. rival Boeing Co. reels from a global ban on its competing 737 Max following two deadly crashes. In October, the European manufacturer logged the most orders since December 2017, aided by a massive 300-jet order from India’s Indigo, part of InterGlobe Aviation Ltd.
Bloomberg reported on Oct. 31 that Airbus was working to pin down the order. Earlier Monday, Airbus locked down a $16 billion wide-body order with long-distance carrier Emirates.
Air Arabia’s Ali told Bloomberg in February that he was considering a triple-digit jet deal with Airbus or Boeing to add destinations in Southeast Asia, Australia, Africa and Europe. The company already ranks as the biggest discount carrier in the Gulf and North Africa.
Air Arabia is also working on a joint-venture plan with Etihad Airways, which it expects to become operational by the second quarter of 2020.
A jet purchase would potentially help Sharjah-based Air Arabia establish the new carrier, Air Arabia Abu Dhabi, announced last month. Etihad is paring orders and shrinking its own network after racking up almost $5 billion in losses over three years.
Air Arabia operates a multi-hub business with bases in Morocco and Egypt, as well as Sharjah and Ras Al Khaimah in the United Arab Emirates. It has a fleet of about 50 A320 aircraft together with a handful of leased A321neos.
To contact the reporters on this story: Siddharth Philip in London at sphilip3@bloomberg.net;Layan Odeh in Dubai at lodeh3@bloomberg.net
To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net, ;Anthony Palazzo at apalazzo@bloomberg.net, Andrew Noël
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