There are some airlines, despite the rough state of the airline industry, that are still looking to expand a bit. At the very least, they are looking to upgrade their fleets to be more fuel efficient. One such airline is Mexican budget carrier VivaAerobus. It has just placed a huge 52-plane order with Airbus and wants a majority of these planes to be A320neos. This deal is said to be worth at least $5.1 billion at list price. However, like most deals of this size, it is likely that VivaAerobus got a great deal on these jets because it was such a huge order.
Details of this deal show that 40 of these planes are going to be A320neo jets. This information was brought to light by the Airbus executive vice president for the Caribbean and Latin America, Rafael Alonso. These planes alone have a combined list price of just over $4 billion. The remaining jets are going to be A320ceo planes. These jets have a combined list price of just over $1 billion. Once again, it is likely that VivaAerobus got these jets at a discounted price as well. However, it is company policy to not discuss the discounts that are given for ordering so many planes.
Airbus was happy to say that this was the largest order it has ever received from a Latin American airline. The company said that it is happy to see carriers in Latin America continue to expand and order new jets.
Of course, this news was not great for everyone. In fact, this was the worst news that Boeing could receive. Until this announcement, VivaAerobus had been getting all of its jets from Boeing. Now, it has placed its largest order ever, which is worth billions, with Airbus. No word was given as to why VivaAerobus placed the order with Airbus and not Boeing.
The struggle that is going on between Boeing and Airbus has been grand as of late. Since the airline industry as a whole has been slowing down, the companies have been fighting for every plane order that has been placed. Airbus and Boeing are trying their best to get their good names out there, and every airline represents a war that continues on between both entities.
With so few airlines buying planes right now, Boeing and Airbus have both had to step outside their comfort zones. In short, the manufacturers are doing their best to sway airlines that typically do not purchase from them to switch teams. In order to do this, heavy discounts are being given by both sides. Thus, the discount that VivaAerobus received was far greater than what they were receiving with Boeing.
The chief executive of VivaAerobus, Juan Carlos, said that his airline will take the delivery of its very first plane from this order in April of next year. The last one will be delivered by 2021. It also holds the right to buy another 40 Airbus A320neo planes at the same price in the future if it wants to.