Bristol engineers wing it to help Airbus land $50bn blockbuster aircraft deal

November 17, 2017
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Innovative fuel-saving wing-tip devices developed by Airbus engineers in Bristol have helped the aerospace giant clinch one of the biggest deals in aviation history – selling 430 aircraft to US investment group Indigo Partners for nearly $50bn (£37.8bn).

The single-aisle aircraft A320neo (new engine option) is a re-engineering of Airbus’s existing A320 short-haul family of aircraft.

It features wings fitted with pioneering sharklets, pictured, designed at Airbus’s Filton plant – where the European group employs around 4,000 engineers – to reduce fuel usage.

As a result it can save up to 20% on fuel on an average flight – a huge cost saving for airlines which also brings massive environmental benefits.

The A320neo family of aircraft, which also incorporates the very latest technologies, including new generation engines, has secured more than 5,200 orders received from 95 customers since its launch in 2010, giving it nearly 60% market share.

Airbus and Indigo Partners’ four portfolio airlines signed a Memorandum of Understanding for 430 additional A320neo family aircraft on Wednesday. The deal is a huge boost for Airbus, which so far this year has trailed US arch-rival Boeing for new orders.

The two have shadowed each other closely for sales over recent years but a fall-off in orders for Airbus’s A380 superjumbo and the success of Boeing’s 787 Dreamliner have, up till now, given the US giant a clear lead.

The Indigo aircraft will be allocated among the ultra low-cost airlines Frontier Airlines (United States), JetSMART (Chile), Volaris (Mexico) and Wizz Air (Hungary).

The 430-aircraft commitment includes 273 A320neos and 157 A321neos worth $49.5bn at list prices – although deals of this magnitude are heavily discounted.

It was announced at the Dubai Airshow by Indigo managing partner Bill Franke and John Leahy, Airbus Chief Operating Officer Customers, Airbus Commercial Aircraft.

When added to existing Airbus A320 family orders, the new agreement will make Indigo Partners one of the largest customers by order number in the world for the Airbus single-aisle aircraft family. Airlines in the Indigo Partners family previously have placed orders for 427 A320 family aircraft.

Bill Franke said: “This significant commitment for 430 additional aircraft underscores our optimistic view of the growth potential of our family of low-cost airlines, as well as our confidence in the A320neo family as a platform for that growth.

“Our airlines know that a great aircraft coupled with a great business plan will create value for our customers. We look forward to bringing comfort and low fares to more passengers around the world as Wizz Air, Volaris, JetSMART and Frontier continue to expand.”

John Leahy added: “Indigo Partners have been a tremendous customer and supporter of the Airbus single-aisle fleet for many years. An order for 430 aircraft is remarkable, 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.  We are proud to augment their airline fleets in Latin America, North America and Europe with the single-aisle aircraft that offers the lowest operating costs, longest range and most spacious cabin: the A320neo family.”

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