The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Airbus SE secured an order for 36 single-aisle planes from UK leisure carrier Jet2 Plc, picking off a Boeing Co customer with steep discounts as it seeks to regain sales momentum.
The A321neo jets, scheduled for delivery over five years through 2028, are valued at $4.9 billion before “significant discounts,†Jet2 said in a statement. The number of planes could rise to 60, bringing the face value of the deal to about $8.1 billion.
Airlines with the resources to commit to new jets are finding bargains as planemakers bend on prices to replenish pandemic-depleted order backlogs. Jet2 said the agreement with Airbus gives the UK-based operator of packaged-holiday tours the flexibility to finance the planes through internal resources and debt.
For Airbus, the move marks a rare steal from US rival Boeing, which had supplied Jet2 with its 737 model in the past. Carriers are typically loath to switch suppliers because of the added complexity and
cost associated with re-training pilots and maintaining a fleet with two different types of aircraft.
The Jet2 deal builds on a follow-on order from US giant Delta Air Lines Inc last week for 30 A321s. Through July, Boeing has dominated the 2021 order race with its
rejuvenated 737 Max, garnering net sales of 270 planes across all models versus 33 for Airbus.