Mega Order for 255 Planes: who is Indigo Partners the Very Good Airbus Customer

Airbus on Sunday signed a mega contract to fill the fleet of airlines of the American company Indigo Partners. Including a certain Wizz Air

On Sunday, Airbus announced that it had signed a mega order for 255 A321 single-aisle planes which will come in a few years to expand the fleets of four airlines all belonging to the American company Indigo Partners. .

Indigo, a loyal customer
The value of this new order amounts to more than 33 billion dollars (nearly 29 billion euros) according to the last list price published in 2018 by the aircraft manufacturer, a rate that is never actually applied. The more you order, the lower the price, so it is possible that Indigo obtained a discount of up to 50% of the displayed price, as was the case for Air France-KLM with the A220.

However, this is the second time that the American fund has signed such a large contract with Airbus. In 2017, already in Dubai, he caused a sensation by ordering more than 400 planes for a list price of more than 46 billion euros! Big figures that we wanted to put into perspective at the time.

In the details of this new order, 102 aircraft are intended for the Hungarian low-cost airline Wizz Air, 91 for the low-cost American Frontier Airlines, 39 for the Mexican Volaris and 23 for the Chilean Jetsmart, according to a press release. Airbus.

A low-cost expert
Indigo Partners specializes in low-cost aviation and was launched by one of the low-cost pioneers in the United States, the American Bill Franke. Now 84 years old, this Texan is at the head of a private equity fund specializing in aviation and even participated in the financing of the first laps of a certain Ryanair. The businessman felt the strong winds of low-cost companies very early on. Between 1993 and 2001, he piloted America West Airlines, which would become US Airways a few years later.

“Our airlines know that a good aircraft combined 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,” said Bill. Franke when he came to the Gulf for the 2017 deal.

Bill Franke has kept the recipe and continues to apply it: cut costs, buy in bulk, and fly as many young planes as possible. It thus fully feeds the second-hand and aircraft rental market by removing aircraft from its fleet just before having to perform the heavy maintenance imposed by the airline after ten years of service. . It is one of the markers of its economic model.

Objective: further boost the growth of Wizz Air
Of the 255 new planes that Indigo has just ordered, 29 are of the future A321XLR model, a so-called “very long range” single-aisle capable of providing long-distance links traditionally reserved for large aircraft (B777, A350). No coincidence. Wizz Air recently obtained a license to operate from Abu Dhabi, seeking to create a bridge between Eastern Europe (its core market where it is stronger than Ryanair) and the Gulf. A win-win deal because by bringing passengers to Emirates for example, Wizz Air becomes a gateway to the hub in the Middle East. However, with the future A321 XLRs, Wizz Air will be able to serve India, Asia, territories where traditional airlines still have good positions to be eaten away by low-cost.

Above all, we see it with the extraordinary post-Covid restart, Wizz Air has delivered a lot of capacity in the number of lines, but also in the number of seats. One of the secrets of its profitability, apart from its cost management, lies in the possibility offered by its new aircraft recently put into service (the A320Neo and the first A321Neo), those precisely ordered at the 2017 show. 20%, above all, they allow about thirty additional passengers to board compared to the Boeing 737s operated by Ryanair and the older generation of Airbus 320s. Wizz Air is today the company with the youngest fleet on the tarmacs (5 years against 8 years at Ryanair and 11 years at Air France-KLM). With this new order, deliveries of which are scheduled from 2025, Indigo Partners intends to maintain its cruising speed.

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Mega Order for 255 Planes: who is Indigo Partners the Very Good Airbus Customer - /10

Summary

Airbus on Sunday signed a mega contract to fill the fleet of airlines of the American company Indigo Partners. Including a certain Wizz Air .

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