Wizz Air today announces an order for an additional 10 Airbus A321ceo aircraft, powered by IAE International Aero Engines AG’s V2500 engines. The additional aircraft will join Wizz Air’s fleet in 2018 and 2019 and will support Wizz Air’s significant growth plans as its responds to strong and growing demand for air travel within Central and Eastern Europe.
Based on current list prices, the value of the new order, placed with Airbus S.A.S. and IAE International Aero Engines AG, is some US$1.16billion, although Airbus has granted significant discounts from list prices to Wizz Air. The Company will retain flexibility in determining the most favourable method of financing the aircraft under the Airbus Agreement.
Wizz Air has been operating the Airbus A321 since November 2015 and currently operates 19 of the 230-seat ultra-efficient aircraft type with another 22 A321 aircraft to join the airline’s fleet by 2019. Wizz Air is achieving 10% unit cost savings with the A321 when compared to the A320, allowing the airline to continue to grow its extensive network within Europe and beyond at the lowest cost and so to continue to bring the lowest prices to its customers. As one of the fastest growing airlines in Europe with one of best profit margins, these additional aircraft, together with the 110 firm-order, new-technology A321neo aircraft already ordered for delivery from 2019 onwards, will see Wizz Air’s fleet more than double by 2024 allowing the airline to maintain its position as the largest low cost carrier in Central and Eastern Europe and driving its unit operating costs to become best-in-class.
Given the size of the list price commitments under the Airbus Agreement relative to the Company, the purchase may constitute a “class 1 transaction” under the Listing Rules and therefore entry into the Airbus Agreement may be conditional upon Wizz Air shareholder approval. A further announcement in this regard will be made in due course.
Speaking at a press conference at the Paris Air Show, Wizz Air Chief Executive Officer, József Váradi commented: “We are delighted to add additional Airbus A321 aircraft to the Wizz Air fleet. Our already strong relationship with Airbus continues as we invest further in our growing fleet. Since its introduction at Wizz Air in November 2015, the Airbus A321ceo has delivered significant cost advantages and the re-designed interior has enhanced our great on-board service. Today’s order, together with the existing order for 110 ultra-efficient A321neo, will see Wizz Air take delivery of 140 new aircraft between now and 2024, as well as the clear CEE low cost market leader, to respond to the significant growth opportunities in the CEE by offering its customers the lowest fares and the opportunity to travel on board one of the youngest, most efficient fleets in Europe.”
“We are delighted that Wizz Air, an all Airbus airline has once again renewed its confidence in Airbus. The A321ceo, the biggest member of the A320 family, with its unbeatable operating costs, is the right aircraft at the right time for Wizz Air’s development.It will allow the company to continue to grow, while offering its passengers the comfort they deserve, a comfort that only Airbus can offer” said Airbus Commercial Aircraft Chief Operating Officer – Customers, John Leahy.