Toulouse-based multinational, Airbus SE has secured a deal worth around US$50 bn with Indigo Partners, an US based private equity firm for their A320 neo planes at Gulf Expo. The deal is the biggest ever in its history of commercial plane and it outdoes the mega deal of $20 Bn by the Boeing Company. The pact comprise 430 planes from its product line of single aisle A320 neo planes.
Deal to Add Low Cost Carriers to Indigo Partners’ Fleet
The deal also marks an excellent achievement for John Leahy, sales chief of Airbus, who is all set to retire following a multi-decade old career. During his stint with Airbus, Leahy has struck deals for several thousands of its jets and has catapulted the French plane-maker to a duopoly position with Boeing.
Bill Franke led Indigo Partners, the pact provides them with improved aircrafts with a narrow body that they could add to their fleet of low-cost air carrier flying from Denver to Budapest. Four companies from the investment portfolio of Indigo Partners namely, Mexico’s Volaris, Chile’s JetSmart, Wizz Air Holdings Plc and Frontier Airlines are supposed to get these planes.
Calling the transaction “remarkable”, Leahy said that 273 of its A320neo jets along with as many as 157 of its A321neo jets which are larger in size have been purchased through this deal.
Following the deal, the shares of Airbus rose to 4 percent and were trading at 85.93 euros which is 2.9 percent higher at 11:13 am in the city of Paris. Airbus’s all time competitor, Boeing struck a deal with FlyDubai to recover some of its collateral damage and sold 175 of its 737 Max planes.
Airbus SE further announced that EgyptAir Airlines Co would now operate 15 of its A320neos that were earlier ordered AerCap Holdings NV, a leasing company.