Avro wrote:Didn't Air Berlin recently order a lot of planes from Airbus ?
Yes, they ordered 60 A319-320's. With the takeover of DBA, they are expecting a large batch of 737-700's as well and now they order some more 737-800 ...
I think it's a very clever step of AB. They explained it in the Airliner World of November. They mainly operate a mixed fleet due to expanding reasons. So that when they need to expand they can see what's on the market, for instance when there are only 737's available and no 320's they can easily take them while other single fleet operaters can't.
And AB isn't the only LCC which do that think of that orange one ......Easyjet.
Since October 2005 Air Berlin has also been using Airbus 320s, currently the most world’s most modern medium-haul aircraft. Delivery of the 60 aircraft for which a firm order has been placed will continue until 2011. The company also has an option on 40 further planes.
What will happen with the option ?
Or did they cancelled the option already ?
Andries wrote:With the takeover of DBA, they are expecting a large batch of 737-700's as well and now they order some more 737-800 ...
Looks like Air Berlin is really going for it !
Air Berlin is definitely Germany's second-biggest airline after Lufthansa.
The acquisition of DBA included a purchase agreement for another 25 Boeing 737s.
Air Berlin expects 85 planes to be delivered between 2007 and 2014...
Who does better?
I have read today in the Belgian newspaper METRO, that some investors are doubt about the purchasing of 60 new B737-800. The investors ask themselves how AB will pay this new order. Also that the investors are knowing that DBA has an order for 25 aircrafts.
With this big question for AB, the shares on the stock market are decreased by 15%.
AB says that they do some research now to find out how to pay his orders?
The aircraft will be delivered between 2007 en 2014.
I think that it isn't very good news for AB or, yes it is? What do you think about the answer of AB on this question?
Yes they have done their research - it took them a week "to do their homework", as they proudly annouced on their surprise conference call this week. You would think they should have prepared their homework before ordering 60 tin cans.
They are adamant that they will not need to raise more equity to pay for the aircraft - but plan the fleet to provide an annual 10% seat capacity growth.
They are also adamant that they got a "good price" for the 737-800, and better than the prices for the A320s. I find it difficult to believe, especially in the current market: has anyone any idea what they are actually paying?