Airbus, Boeing kick off 2011 with more aircraft sales
Airbus and Boeing rang in the New Year with aircraft orders from easyJet and CIT Aerospace, respectively. EasyJet confirmed it reached an agreement with Airbus to exercise options covering 15 A320 aircraft valued at $1.1 billion at list prices for delivery between 2012 and 2014 and to convert an existing order for 20 A319s into the larger A320 model. In addition, the LCC upgraded purchase rights for a further 33 A320s into options, bringing the total number of options held to 42 aircraft. EasyJet has the right to exercise the additional 33 options up to March 2013.
Separately, CIT ordered 38 737s comprising 15 737-900ERs and 23 737-800s with purchase rights for seven additional 737NGs. According to the companies, it is the largest order placed by a leasing company for the 737-900ER and the largest order placed by CIT for Boeing airplanes. Deliveries run into 2017.
“This order of Next-Generation Boeing aircraft reflects our efforts to maintain one of the youngest and most technologically advanced fleets in the industry,” CIT President-Transportation Finance Jeffrey Knittel said. As of Sept. 30, 2010, CIT had 140 Boeing aircraft in its portfolio. With this new order, the company has an orderbook of 111 aircraft, of which 58 are Boeing; it has 140 Boeing aircraft in its portfolio.
EasyJet CEO Carolyn McCall said the Airbus orders “will help deliver easyJet's strategy of continued profitable growth towards our target of 12% ROCE through the cycle, whilst providing even more flight capacity for our passengers. A central feature of the agreement is the flexibility it gives easyJet to vary the growth rate in its capacity to reflect economic conditions and market opportunities.”
EasyJet’s fleet will grow to 220 aircraft by Sept. 30, 2013 from 196 at the same point in 2010, with the proportion of A320s increasing steadily to 26% from 12%.
The airline's founder and largest shareholder, Stelios Haji-Ioannou, was less enthusiastic, stating “We shall see if these 15 incremental aircraft will find deployment on profitable new routes and earn the appropriate return on capital employed…I am still hoping to get greater transparency on which routes these and any other new aircraft are to be deployed.”
By Cathy Buyck
Back to other news
