Aircraft maker Airbus has bagged a $49.5 business deal with top U.S. investment firm Indigo Partners. The firm has commissioned Airbus to create 430 aircrafts.
The investment firm has already made a number of airline transactions, its investments include the U.S. based Frontier, Mexico’s Volaris, and Europe’s Wizz Air. It is now looking to acquire units from Airbus’ A320neo family.
The acquisition has come at an opportune moment for Airbus which has been through some major hurdles in the past week. The company failed to impress airline tycoon, Emirates, which rejected its A380 superjumbo deal. However, with Indigo now on its side, Airbus’ fortunes seem to have taken a turn for the better.
The U.S. investment company has been openly enthusiastic about the deal. Its managing partner, Bill Franke, even flew to Dubai for the signing ceremony. He stated that the deal would be finalized by the end of the year.
The Airbus aircraft is likely to be used in all Indigo airlines. This includes airlines across the world including the JetSmart in Chile. The investment company stated that Airbus was chosen since it was low cost well- built airline, as such, it was light on the pocket but heavy on safety. According to Indigo investment this meant that the aircraft “fits the bill”.
With the Indigo deal secured, Airbus has succeeded in doubling its existing orders for the year. The deal could also be the biggest that Airbus has ever made. The company’s last major order was a 250 plane shipment for an Indian budget carrier called IndiGo. The carrier paid Airbus $27bn for the acquisition. The U.S. investment company’s order however trumps the former by almost 20bn.
However, Airbus sales chief John Leahy informed the press that airlines routinely get discounts on bulk buys. Thus, while the number is certainly a grand quotation, Indigo will likely pay far less for its shipment.