Market Intelligence: -Airline Aircraft Orders

India’s new Airline Akasa Air orders 72 Boeing 737 MAX Aircraft at the Dubai Airshow

Boeing and Akasa Air, a brand of SNV Aviation, announced the new Indian carrier has ordered (72) 737 MAX airplanes to build its fleet. Valued at nearly $9 billion at list prices, the order is a key endorsement of the 737 family’s capability to serve the rapidly growing Indian market.

At the 2021 Dubai Airshow, Akasa Air CEO Vinay Dube said, “We are delighted to partner with Boeing for our first airplane order and thank them for their trust and confidence in Akasa Air’s business plan and leadership team. We believe that the new 737 MAX airplane will support our aim of running not just a cost-efficient, reliable and affordable airline, but also an environmentally friendly company with the youngest and greenest fleet in the Indian skies.”

Dube added, “India is one of the fastest-growing aviation markets in the world with an unparalleled potential. We are already witnessing a strong recovery in air travel, and we see decades of growth ahead of us. Akasa Air’s core purpose is to help power India’s growth engine and democratize air travel by creating an inclusive environment for all Indians regardless of their socio-economic or cultural backgrounds.”

Akasa Air’s order includes two variants from the 737 MAX family, the 737-8 and the high-capacity 737-8-200. Providing the lowest seat-mile costs for a single-aisle airplane as well as high dispatch reliability and an enhanced passenger experience, the 737 MAX will ensure Akasa Air has a competitive edge in its dynamic home market.

“We are honored that Akasa Air, an innovative airline focused on customer experience and environmental sustainability, has placed its trust in the 737 family to drive affordable passenger service in one of the world’s fastest-growing aviation regions,” said Stan Deal, Boeing Commercial Airplanes president and CEO. “The 737 MAX, with its optimized performance, flexibility and capability, is the perfect airplane to establish Akasa Air in the Indian market and ensure it effectively grows its network.”

The 737 MAX family delivers superior efficiency, flexibility and reliability while reducing fuel use and carbon emissions by at least 14% compared to airplanes it replaces. India’s growing economy and expanding middle class will fuel strong demand for commercial flights, driving the need for more than 2,200 new airplanes in South Asia valued at nearly $320 billion over the next 20 years, according to Boeing’s 2021 Commercial Market Outlook forecast.

About Akasa Air

Akasa Air will be the most dependable airline in India, offering efficient customer service, reliable operations, and affordable fares – all in the Akasa Way. Akasa Air’s empathetic and youthful personality, employee-friendly culture, customer-service philosophy, and a tech-led approach will make this commitment a reality for all Indians. The carrier plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India.

For more information kindly contact Boeing.

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Jazeera Airways commits to 28 new A320neo family aircraft

Airbus has signed a Memorandum of Understanding (MoU) with Jazeera Airways, the Kuwait-based carrier, for 20 A320neos and eight A321neos.

The MoU was signed by Rohit Ramachandran, Jazeera Airways Chief Executive Officer and Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International.

Marwan Boodai, Chairman Jazeera Airways said, “Jazeera Airways is pleased to extend its long-term relationship with Airbus further with this significant new order. We will effectively double our current fleet size to 35 aircraft by 2026. The airline has pulled out of the pandemic strongly in Q3 with a return to profitability.  We have exciting expansion plans ahead, which will further boost our contribution to the Kuwait economy and in particular the travel sector.”

“We are proud to extend our partnership with Jazeera Airways through this latest agreement which will add an additional 28 Airbus aircraft to its all Airbus fleet”, said Christian Scherer, Airbus Chief Commercial Officer, and Head of Airbus International. “The A320neo Family is without doubt the best platform to support Jazeera Airways’ growth plans. This is the perfect illustration of how Airbus helps escort the growth of its successful customers.”

Rohit Ramachandran, CEO Jazeera Airways added, “By taking both A320neo and A321 neo options we will have great flexibility to extend our network to medium and longer haul destinations from Kuwait, offering passengers more choice to travel and enjoy popular destinations as much as underserved ones”.

Jazeera Airways commenced operations in 2005 and has since emerged as a leading carrier in the region. It is operating regionally and internationally serving Middle East, Europe and Asia’s top destinations from its home base Kuwait. The Kuwaiti airline supports the country’s 2035 vision to further economic expansion and transformation into a commercial hub.

For more information kindly contact Airbus.

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ALC order for 111 Airbus aircraft launches Sustainability Fund

Air Lease Corporation (ALC) has signed a Letter of Intent (LoI) covering all Airbus Families, highlighting the power of the company’s full product range.

The agreement is for;

  • 25 A220-300s
  • 55 A321neos
  • 20 A321XLRs
  • 4 A330neos
  • 7 A350Fs.

The order which will be finalised in the coming months, makes the Los Angeles based ALC one of Airbus’ largest customers and lessor with the biggest A220 order book. Founded in 2010, ALC has ordered a total of 496 Airbus aircraft to date.

With this order ALC and Airbus are launching a multi-million dollar ESG fund initiative that will contribute towards investment into sustainable aviation development projects that will in the future be opened to multiple stakeholders from the aircraft leasing and financing community and beyond.

“This new order announcement is the culmination of many months of hard work and dedication by both organizations to optimize and fine tune the size and scope of this large aircraft transaction in view of the rapidly growing global airline demand to modernize their jet fleets through the ALC leasing medium,” said Steven F Udvar-Hazy, Executive Chairman of Air Lease Corporation. “After lengthy and detailed consultations with several dozen of our strategic airline customers around the world, we are focusing this comprehensive order on the most desirable and in demand aircraft types, covering the A220, A321neo, A330neo and A350 families. ALC is an international Market Leader in each of these categories of the most modern Airbus product lineup. These multi- year additions of new technology aircraft assets to ALC’s expanding portfolio will allow us to grow our revenues and profitability while satisfying our airline customer requirements.”

Udvar-Hazy added: ”ALC was the launch customer for the very popular A321LR and XLR versions. Now, we become the launch lessor for the A350F and by far the largest lessor customer for the A220. We had the vision to be first adopters of the A321 and are convinced we have made the right choice again on the A220 and A350F, responding to what we see the market will need in the period of recovery ahead. In addition we are very enthusiastic to have inked a partnership for a sustainability fund which will contribute to the green future for our industry.”

“With this major order, we underscore our confidence not only in the strong future and growth of global commercial air transport, but in ALC’s business model, in our specific aircraft purchase decisions including, for the first time, the new A350 Freighter, and finally in our long term view that ordering new aircraft is an optimum investment of our shareholder capital,” said John Plueger, Air Lease Corporation CEO and President. “Moreover, we and Airbus hereby announce the first ever joint ESG initiative in aircraft procurement by creating a multi-million dollar fund for sustainable aviation development projects critical to the future”.

“This is a major announcement for Airbus in 2021. ALC’s order signals we’re moving beyond the Covid doldrums. With foresight, ALC is solidifying its order portfolio for the most desirable aircraft types as we exit the crisis and in particular, it has seen the formidable value the A350F brings to the cargo market. ALC’s endorsement confirms the global enthusiasm we see for this quantum leap in the freighter space and we applaud its insightfulness in selecting it and in beating everyone to the finish line for the first A350F order announcement. In addition we agreed to make our sustainable aviation vision part of this agreement which is a priority for us both,” said Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International.

The A220 is the only aircraft purpose built for the 100-150 seat market delivering an unbeatable 25% better fuel efficiency* and with widebody passenger comfort in a single-aisle aircraft. The A321 Family which includes the XLR version with up to 4,700nm long range and 30% lower fuel consumption* combined with the A330neo are ideal partners for the so-called middle of the market segment. The A350F, based on the world’s most modern long range leader optimised for cargo operations offering at least 20% lower fuel burn than the competition and the only new generation freighter aircraft ready for the 2027 ICAO CO2 emissions standards.

For more information kindly contact Airbus.

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Indigo Partners portfolio airlines order 255 A321neo aircraft at the Dubai Airshow

Wizz Air (Hungary), Frontier (United States), Volaris (Mexico) and JetSMART (Chile, Argentina), Indigo Partners portfolio airlines, have announced an order for 255 additional A321neo Family aircraft under a joint Indigo Partners agreement. The firm order was signed at the Dubai Airshow.

This order brings the total number of aircraft ordered by the Indigo Partners’ airlines to 1,145 A320 Family aircraft. The aircraft ordered today are a mix of A321neos and A321XLRs, which will be delivered to the individual airlines as follows:

  • Wizz Air: 102 aircraft (75 A321neo + 27 A321XLR)
  • Frontier: 91 aircraft (A321neo)
  • Volaris: 39 aircraft (A321neo)
  • JetSMART: 23 aircraft (21 A321neo + 2 A321XLR)

In addition to this order, Volaris and JetSMART will upconvert 38 A320neo to A321neo from their existing aircraft backlogs.

“This order reaffirms our portfolio airlines’ commitment to consistent growth through the next decade. The Airbus A321neo and A321XLR have industry-leading efficiency, low unit costs and a substantially reduced carbon footprint relative to prior models. With these aircraft, Wizz, Frontier, Volaris and JetSMART will continue to offer low fares, stimulate the markets they serve and improve their industry-leading sustainability profile,” said Bill Franke, Managing Partner of Indigo Partners.

“We are happy to further expand our relationship with our great Indigo Partners’ airlines Wizz, Frontier, Volaris and JetSMART who have acted fast and decisively over the last few months to position themselves for this landmark order as the effect of the pandemic recedes and the world wants more sustainable flying,” said Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International.

Indigo Partners LLC, based in Phoenix, Arizona, is a private equity fund focused on worldwide investments in air transportation.

For more information kindly contact Airbus.

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Jet2 announces agreement to purchase additional 15 Airbus A321 NEO aircraft

The announcement is quoted as follows:

“The Board is pleased to announce that the Company has entered into an agreement with Airbus to purchase a further 15 new firm ordered Airbus A321 NEO aircraft. This order is in addition to the 36 firm aircraft orders, together with the flexibility to extend up to 60 aircraft, that the Company announced on 31 August 2021.  These additional 15 aircraft will be delivered between 2026 and 2029 and the terms of the agreement are substantially the same as those approved by the Board for the initial 36 firm aircraft orders.    

At current list prices these additional 15 aircraft represent a total value of approximately $2.0billion with a total transaction value, for up to 75 aircraft, of approximately $10.1billion, though the Company has negotiated significant discounts from the list price. The Company will retain flexibility in determining the most favourable method of financing the aircraft, which will be through a combination of internal resources and debt.”

Source: See Jet2 Announcement here.

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