Airbus has been handed a huge deal that will see the company 430 of their A320 neo-family jets to four airline companies. The deal was signed earlier on Wednesday, with U.S investor Bill Franke increasing his bet on budget airlines.
The deal is reported to be worth around $50 billion, with Airbus set to supply the planes to four airline companies, Mexico’s Volaris, Chilean carrier JetSmart and Hungary’s Wizz Air, all of which Franke’s Indigo Partners holds shares.
Franke was present to sign the deal during the Dubai Airshow which also sees other deals struck with airline companies all over the globe. The Dubai Airshow is used by investors and stakeholders in the company to negotiate for new competitive prices from the top aircraft manufacturers in the world.
Another budget airline flydubai also agreed to purchase 175 Boeing 737 Max jets, with the deal to cost the airline company around $21 billion. Airbus has stated that the deal it signed with Franke will be concluded over the next few weeks.
The two major deals signed recently goes a long way to increase the strength of budget airlines who are operating excellently by combining bargaining charges with optional services and maintenance upgrade, where passengers are required to pay extra for those services.
The deal with Franke is poised to be a very big achievement for Airbus Sales Chief John Leahy who has been in charge of the company’s sales since 1994, with the veteran set to retire in a few months.
Sales Chief John Leahy has over the years helped the company sell jets worth roughly $1.7 trillion at list prices, while also spearheading the rise in their market share to match that of long-term rivals Boeing.
Things haven’t been rosy for the company this year though, with the shares of the company falling by 35%, with rivals Boeing making further progress in Singapore and other Asian countries.
The company still doesn’t know if it will be able to keep its Airbus’s A380 superjumbo in production beyond 2020, with their primary customer’s Emirates stating that it needs confirmation from the company that the planes will still be manufactured.