Wednesday, July 24, 2024

Volaris closes deal with Airbus for 25 new planes

Mexican low-cost airline Volaris has closed a deal with Airbus to purchase 25 planes, while its fellow low-cost carrier Viva Aerobus could reach an agreement with the French plane manufacturer later this month. 

On Tuesday, Volaris announced it is ordering 25 A320NEO (New Engine Option) narrow-body planes as it pushes to expand its operations on domestic flights and with destinations in the United States and Central America. The purchase comes as part of an agreement reached  this past October, according to news outlet Aristegui Noticias, and leaves 143 planes yet to be delivered

Airbus plane
Volaris plans to have an all-Airbus NEO fleet by 2028. (Wikimedia Commons)

“These aircraft will support the company’s long-term business viability, as well as our sustainability strategy,” CEO of Volaris Enrique Beltranena said during the 2023 Air Show in Paris. 

The new planes will help the airline boost its goal of operating an all-Airbus NEO fleet by 2028. With more than 170 planes of this style, Volaris currently has the most A320NEO aircraft in Latin America. 

Since its launch in 2005, the Mexican carrier, considered by specialized media to be the largest in the country, has only operated Airbus aircraft. 

Meanwhile, Viva Aerobus is reportedly negotiating a deal with Airbus for at least 90 narrow-body jets of the same family. Sources told Reuters on Wednesday that the transaction will fall outside the Paris Air Show, the world’s biggest air exhibition.

Viva Aerobus plane
Viva Aerobus is another Mexican low-cost carrier in the market for more planes. (Viva Aerobus/Twitter)

According to sources, negotiations between both companies have taken place alongside the ongoing airshow and report it is likely both companies will close a deal for approximately 90 aircraft and announce it this week.

Reuters reported that Airbus declined to comment and that Viva Aerobus was not immediately available. The airline previously told Reuters it had an ongoing order of A321NEO with Airbus with deliveries until 2027. The carrier said it has not signed a new deal with any manufacturer. 

Viva Aerobus has long been a battleground in the fight for market dominance between Airbus and Boeing. In 2013, the airline switched from Boeing to Airbus with an order for 40 Airbus A320 jets worth up to US $4 billion after a fierce competition between the two aviation giants.

Prior to the start of the Paris Air Show, sources told Reuters that Airbus is favored to win again.

Both Volaris and Viva Aerobus registered historic numbers of passengers in 2022, together transporting more than 50 million travelers. Both have also expanded their network this year and have added new domestic flights.

With reports from Aristegui Noticias, Reuters, Reuters and The Logistics World

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