IAG firms up 15 A320neo orders with Airbus

International Airlines Group (IAG) has converted 15 Airbus 320neo options, announced in August 2013, into firm orders.

The value of the deal is worth $1.4bn at list prices.

IAG is expecting to take the delivery of the aircraft in 2021 and 2022. Any partner carrier of the group will be able to use the new aircraft to replace its fleet.

IAG is the parent company of Aer Lingus, British Airways, Iberia and Vueling.

Airbus customers chief operating officer John Leahy said: "IAG and its airlines are one of Airbus’ most prestigious and loyal customers, with fleets and orders covering the full range of our products.

"IAG is one of the biggest customers for Airbus single aisle aircraft and demonstrates the preference of our products amongst the world’s leading airlines."

With the A320neo family of aircraft, Airbus is expecting to reduce the fuel consumption up to 20%, offer longer range services and minimise maintenance costs, as well as reduce carbon emissions.

A320neo was launched in 2010 and since then the family of aircraft has received 60% of all new orders for single aisle aircraft, with more than 100 seats, from more than 75 airlines across the globe.

Separately, South Africa’s minister of finance has ordered state-owned airline South African Airways (SAA) to conclude a deal with Airbus to lease five A330 wide-body planes, as announced in July.

The deal includes swapping the purchase of 10 A320 jets for a lease of five A330-300 planes from Airbus.

Following the deal, SAA will not have to make additional pre-delivery payments (PDPs) to Airbus and for each delivery of A330s, the PDPs of more than $100m that have already been paid will be refunded by Airbus.

Without the absence of the deal, SAA would have to pay an additional amount of around $40m of PDPs to Airbus.

---

Image: IAG firms up 15 A320neo orders with Airbus. Photo: courtesy of Airbus S.A.S