Business | Aviation
Airbus gets firm orders for 18 jets worth $2.25b
Airbus, the European aircraft manufacturer, has received firm orders worth $2.25 billion (Dh8.26 billion) for 18 new aircraft at list price from two Kuwaiti entities with 10 more on options.
- By Saifur Rahman, Staff Reporter
- Published: 00:00 November 21, 2005
Airbus, the European aircraft manufacturer, has received firm orders worth $2.25 billion (Dh8.26 billion) for 18 new aircraft at list price from two Kuwaiti entities with 10 more on options.
The deals signed by Airbus at the Air Show yesterday include 12 A350-800s and six more on options ordered by Alafco Group, the Kuwait-based international leasing company. The deal was worth $1.86 billion at list price.
David Velupillai, Airbus spokesperson, told Gulf News the deals were worth $2.25 billion. "Each A350 costs $155 million while each A320 costs $65 million at list price."
Analysts say airlines command between 20 to 30 per cent discounts on firm orders depending on the number and specification of the aircraft.
Airbus' new A350 comes in two new versions. The A350-800, selected by Alafco, can fly 253 passengers up to 8,800 nautical miles or 16,300 kilometres.
"Leasing companies are always a good pointer to success, since their business is built around anticipating airlines' needs," said Gustav Humbert, Airbus's president and chief executive officer.
"And as the first leasing company to have selected the Airbus A350, Alafco is well placed to capitalise on airline demand for it."
Kuwait-based Jazeera Airways, the first private airline in the Gulf and the second low-cost carrier, yesterday signed a deal for six Airbus A320s with four on options, a deal worth $390 million at list price.
"The region's aviation industry is in a strong growth mode and we want to capitalise this," said Marwan Boodai, chairman and chief executive of Jazeera Airways.
"We commenced operations barely a month ago with two A320s and this second order we are placing for additional capacity demonstrates the rate of success."
With these two announ-cements, the number of firm orders for Airbus aircraft announced at the Air Show reached 23, much lower than the $9.7 billion firm order received by its American rival Boeing.
Jazeera Airways will use these aircraft to expand its services to new destinations, including Egypt and India, where there is a strong demand.
"We are also going to double the services to Dubai from a single flight to double daily. Our long-term growth plans would also include Indian subcontinent, where we see a great potential for growth," Boodai said.
The Kuwaiti airline, whose initial public offering was 12 times oversubscribed, plans to list its shares in Dubai.
Airbus's new A350 comes in two new versions. The A350-800, selected by Alafco, can fly 253 passengers up to 16,300 kilometres. Each A350 costs $155 million while each A320 costs $65 million at list price.
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