Published on : Friday, February 14, 2014
VietJetAir, a low cost carrier signed around 90 Airbus jets worth about $9.1 billion at sticker prices at the Singapore Air show.
The budget carrier and Airbus had a preliminary agreement last year but it wasn’t included in Airbus’s order book for 2013.
The deal includes confirmed orders for 63 of the single aisle A320 jets and 30 options to purchase. VietjetAir will also lease another eight A320s.
The airline which flies to dozens of destinations within Vietnam and a handful of overseas routes said the A320 would help it lower operating costs.
Airbus spent most of its first press conference at Asia’s biggest aerospace and defense show stressing the importance of Asia to its business. Asian airlines are expanding aggressively due to strong economic growth.
Fabrice Bregier, president and CEO of Airbus said that here’s where the action will be.
The company forecasts the region will need some 11,000 aircraft worth more than $1.8 trillion over the next 20 years.
The prices of Airbus are much lower than that of Boeing, which is expecting Asia’s airlines to buy 12,820 aircraft worth $1.9 trillion. Airbus felt that the increasing demand of the bigger middle classes in China which is a major player in the travel sector will increase the growth of these jets. It is expected that in the next 20 years China will replace the U.S. in its domestic travel market
Tags: Singapore Air show