Canadian Manufacturing

European airline signs conditional US$12.5B deal for 110 Airbus jets

Airbus at the Paris Airshow announced a final tally of $57 billion worth of business involving 421 total aircraft

PARIS—European low-cost carrier Wizz Air says it has signed a provisional agreement to buy 110 Airbus 321neo jets in a deal that would be worth more than $12.5 billion at list prices.

The announcement by the Budapest-based airline on Thursday came on what was expected to be a day of final tallies of orders and commitments by European plane maker Airbus and U.S. rival Boeing Co. at the Paris Air Show.

As part of the deal, which still must be finalized by its board, Wizz Air said the deliveries of the single-aisle A321neo planes are to start in 2019. The memorandum of understanding also gives the carrier, which focuses on Eastern and Central Europe, purchase rights for another 90 A321neo aircraft.

Wizz Air, which now has a fleet of about 60 Airbus planes, said the new deal was worth over $12.5 billion, but “discounts will be granted.” Many carriers score cost reductions from Airbus and Boeing when they make bulk purchases.

Separately Thursday, Airbus announced its final count from the Paris show: $57 billion worth of business involving 421 total aircraft. Roughly a third of those planes were firm orders, worth $16.3 billion, and the rest were commitments for 297 aircraft.

Boeing was expected to release its final figures later Thursday.

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