18th Jun 2015 09:28
LONDON (Alliance News) - Wizz Air Holdings PLC Thursday said it has signed a memorandum of understanding with plane maker Airbus SAS to buy 110 A321neo aircraft and take uncommitted purchase rights on a further 90 of the same aircraft.
The planes, which are due to start being delivered in 2019, will both replace Wizz Air's current aircraft when they are returned to lessors as well as providing additional capacity for the airline's further growth.
Under the deal, a number of the A321neo's could be substituted with smaller A320new aircraft depending on the airline's future requirements. The deal also means that an existing order for 10 A320neo aircraft that were scheduled for delivery in 2018 has been cancelled.
At current list prices, the 110 A321neo's are worth more than USD12.5 billion, although aircraft manufacturers typically grant discounts to airlines and Wizz Air confirmed this will be the case.
"We looked at different options for this order but Airbus came in with the best overall mix of aircraft, cost efficiency, support and price, so it made sense for us to continue our long relationship with them as we continue to expand our market reach across and beyond Europe," said József Váradi, chief executive of the Eastern European low-cost airline said.
"Our operations will continue to see significantly lower costs with these new aircraft achieved through cabin innovations, the latest engine technology, and efficiency improvements," he added.
"As the company has recently highlighted, we have an exciting and compelling growth opportunity in Central and Eastern Europe where GDP growth rates significantly exceed that of more mature Western European markets, and the propensity for air travel is growing," the CEO said.
Wizz Air currently operates 61 Airbus A320 aircraft over 380 routes from 22 bases. Those aircraft are from an order for 112 Airbus planes including 27 high density A321s that will begin delivery in November. Deliveries of the remaining 41 aircraft which will remain on order, following the cancellation of 10 aircraft as part of the new order, will continue through mid-2018, the airline said.
Wizz Air shares were down 0.4% at 1,621.00 pence in London Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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