Coming up to competition, Airbus gets Flaynas order for 80 A320neo commercial jets
In the latest attempt to expand its aircraft fleet, Saudi Arabia based carrier, Flynas, announced yesterday that it is in a deal with Airbus Group SE (EPA:AIR) to acquire 80 single aisle commercial jets, valued at around $8.6 billion, upgrading its previously placed order. The current announcement would be a good news for the aircraft manufacturer, as it has received tough competition from the market during fiscal year 2016.
As part of the current announcement, the airline plans to acquire 60 Airbus’ A320neo along with upgrading its previous order for 20 current versions of A320 to A320neos. Furthermore, the airline would also have an option to acquire another 40 A320neos in future.
According to Flynas chairman, Ayed Al Jeaid, the current deal with Airbus is approximately valued at $8.6 billion which is expected to contain discounts, according to the analysts related to the industry. As part of the current deal, Airbus is expected to make deliveries of these commercial jets over time span of 8 years, beginning from fiscal year 2018.
It was also reported that Airbus was competing with its biggest rival Boeing Co. (NYSE:BA) to take Flynas commercial aircraft orders and by getting these orders. The company has already beaten its rival in the race to book most commercial aircraft orders. Boeing, on the other hand, is reportedly in talks with various airlines to finalize commercial aircraft orders through which it would be able to come up to competition with the European aircraft manufacturer.
Comparison of recently updated full year 2016 order book reveals that Boeing lost its lead in booking most commercial aircraft orders, compared to Airbus, which booked multiple orders during the month of December. Till November-end, Boeing had Airbus’s lead and was confident that it would keep its lead till the end of the year.
Analysts related to the industry believe that Boeing has not included some of its huge orders it received during 2016. If the airline adds those orders in its 2016 order book, it might be able to take Airbus’ lead in booking most commercial aircraft orders.