Lufthansa and EasyJet place billion-dollar orders with Airbus, Boeing
Airlines across the world are snapping up jets as they look to modernise their fleets
Deutsche Lufthansa AG said it ordered as many as 200 short-haul aircraft from Boeing Co and Airbus SE as airlines around the world continue to make large purchases to renew their fleets.
The German carrier will buy 40 Boeing 737 Max jets, with options for another 60, as well as 40 Airbus A220 models, it said in a statement Tuesday. The order for the Max will be the first by Lufthansa, which currently operates only Airbus narrowbody planes.
$20 billion for EasyJet
EasyJet Plc shareholders signed off on an almost $20 billion aircraft order from Airbus SE, also on Tuesday, making the carrier one of the planemaker's biggest customers in Europe.
The British low-cost airline held a general meeting with shareholders in Luton, London to get approval for its largest aircraft order yet: the purchase of 157 A320neo family planes with an option to add 100 more.
The company first announced the order in October and said deliveries would run through 2034.
The mega-order will pave the way for fleet renewal by replacing the airline's older A319 aircraft and about half of its A320ceo jets. EasyJet's fleet is entirely made up of Airbus planes, which keeps maintenance and training costs low compared to operating aircraft from different manufacturers.
EasyJet is also converting 35 of its A320neos which it previously ordered into the A321neo model for delivery through 2028. The purchase and conversion value is based on the Airbus list prices, though customers typically get steep discounts for major orders.
All eyes were on Stelios Haji-Ioannou, EasyJet's founder and biggest shareholder with a 15 per cent stake, who at the height of the pandemic engaged in a battle with the carrier's board seeking a cancellation of the carrier's Airbus order, citing a lack of demand. In the end, 99.94 per cent of EasyJet's shareholders voted in favor of the purchase.
Mega orders and delayed deliveries
EasyJet is among the many airlines which have placed giant orders for aircraft this year. Market leader Ryanair Holdings Plc, Indigo and United Airlines Holdings Inc. have all announced mega deals from Boeing Co. and Airbus for their workhorse narrowbody jets.
The bigger concern is deliveries of aircraft at a time when airlines are looking to replace older generation planes with more fuel efficient variants, and both Airbus and Boeing are grappling with a backlog in the supply chain that's hampering their ability to handover planes.
Airlines across the world are snapping up jets as they look to modernise their fleets and secure hard-to-win delivery slots from both Airbus and Boeing.