Dubai orders break records

Eleanor Steed
By Eleanor Steed November 15, 2017 18:14

Dubai orders break records

We had to wait for them this time around but there has been a flurry of orders from the Dubai airshow today, including the record-breaking 430 aircraft memorandum of understanding (moU) from Indigo Partners, which incorporates four carriers: Frontier Airlines, JetSMART, Volaris and Wizz Air, which has confirmed it will take 72 A320neo and 74 A321neo aircraft.

The 430-aircraft commitment from Indigo Partners comprises 273 A320neos and 157 A321neos worth $49.5 billion at list prices and was announced at the Dubai Airshow by Bill Franke, Managing Partner of Indigo Partners, and John Leahy, Airbus Chief Operating Officer Customers, Airbus Commercial Aircraft. When added to existing Airbus A320 Family orders, the new agreement will make Indigo Partners one of the largest customers by order number in the world for the Airbus single-aisle aircraft family. Airlines in the Indigo Partners family previously have placed orders for 427 A320 Family aircraft. Engine selections will be made and announced at a later date.

Flydubai also made headlines with a commitment for 225 737 Max aircraft. This is the third aircraft order placed by the airline with Boeing and at the end of this year, flydubai will have a fleet of 61 Next 737-800NGs and 737 MAX 8 aircraft. In addition, there is a pipeline of 70 aircraft due for delivery by 2023.

All the aircraft orders at Dubai in 2017 make perfect sense but you cannot escape the fact that the Emirates 787 order earlier in the week was the big win and Airbus may well have drafted in Bill to the show at the last minute to ensure that it was not a Boeing whitewash in the mainstream press.

With today’s order news, some lessors may be wishing that they had not placed some of those speculative orders. Major airlines are now pilling on the pressure with some asking for three-year lease terms – Will anyone be mad enough to take those deals?  We shall see, but if they do, no window dressing of such deals will detract from the fact that any such agreement would be desperation.

Eleanor Steed
By Eleanor Steed November 15, 2017 18:14