The European multinational corporation, Airbus has got its biggest-ever order this week. In an announcement made on Wednesday, the company revealed that it’s signing a deal to supply 430 of its medium-range A320 family of aircraft to US investment firm Indigo Partners, at a list price of $49.5 billion (42 billion euros).
“An order for 430 aircraft is remarkable,” said Airbus chief operating officer, John Leahy.
“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 glance over the economic impact of this historical contract unveils that the announcement sent Airbus’s share price soaring, rising by more than 3.0 percent to 86.09 euros in a generally softer market. It gave up some of its gains, showing a gain of 1.7% in afternoon trading in Paris.
Airbus’s Fabrice Bergier told AFP at the Dubai Air Show, where the announcement was made, that the contract was a “new sign of confidence” in the European planemaker’s jets.
“It’s an overwhelming success for Airbus and its A320 aircraft,” he said.
The order is for 273 A320neos and 157 A321neos, the revamped and more fuel-efficient version of Airbus’s most popular single-aisle passenger jet, the A320.
Indigo Partners’ found and chief Bill Franke said the deal “underscores our optimistic view of the growth potential of our family of low-cost airlines,” Frontier Airlines of the US, JetSMART of Chile, Volaris of Mexico, and Wizz Air of Hungary.
The final amount of the contract was not officially revealed, since it is customary for aircraft manufacturers to grant rebates on the list price, depending on the volume of the order.
But the contract will more than double Airbus’s current order book for this year, which had stood at 288 planes at the end of October. It will also place Airbus, with a total 718 orders this year, ahead of its arch-rival Boeing which has 605 orders, as per AFP reported.
It will bring the total number of orders for the A320 to more than 13,700 since the aircraft went into service in 1988, making it one of the best-selling planes in aviation history.
Airbus’s total order book should now increase to more than 7,000, giving it enough work for around nine years at the current rate of production.