Airbus Makes a $3.3 Billion Deal with Kuwait’s Jazeera Airways

The Dubai Airshow is known for a high number of trades being made between the companies but this year it has been somewhat hindered by the impacts of the Covid-19 pandemic. The sale of long-haul wide-body planes which were always the trademark of these shows has now been replaced by high orders of small carriers.

Highlights

  • Executives described the deal to be a memorandum of understanding rather than a firm order.
  • Airbus also received an order of 10 narrow-body A220 jets from Nigeria's Ibom Air.
  • The European aircraft maker has already signed a deal to sell 111 carriers to Air Lease Corporation.

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Airbus Jazeera Airways Deal

The ongoing Dubai Airshow seems to be turning out more and more fruitful for aircraft manufacturing giant Airbus as it seems to be getting a lot of business from around the world. One of the latest deals with Kuwait’s Jazeera Airways has reportedly been made to sell 28 aircraft to the airlines and the deal is valued at around $3.3 billion. A per the reports the deal includes the acquisition of 20 single-aisle A320neos with 8 A321neos which is the maker’s model to compete with Boeing 737 MAX. There’s also an option to sell five additional aircraft to the rapidly growing low-cost airline.

Airbus Going Strong Amidst Effects of Pandemic

The CEO of Jazeera Airways, Rohit Ramachandran said that the handshake was more valuable than any formal contract as the executives described the deal to be a memorandum of understanding rather than a firm order. The first planes are expected to be delivered by 2026. Jazeera Airways was founded in 2004 and is a Middle East discount carrier and was launched to meet the demand of low-cost carriers in the Gulf region.

Airbus also received an order of 10 narrow-body A220 jets from Nigeria's Ibom Air, a new carrier owned by the oil-rich southeast state of Akwa Ibom. Although the aircraft maker has declined to reveal the details of the deal the estimation is valued at around $810 million according to the pre-pandemic price list of the manufacturer.

The Dubai Airshow is known for a high number of trades being made between the companies but this year it has been somewhat hindered by the impacts of the Covid-19 pandemic. The sale of long-haul wide-body planes which were always the trademark of these shows has now been replaced by high orders of small carriers.

However, Airbus is looking quite strong in terms of deals it has been making. The European aircraft maker has already signed a deal to sell 111 carriers to Air Lease Corporation and an additional 255 new aircrafts to Indigo Partners’ which is a deal valued at $30 billion.

The ongoing five-day Dubai Air Show is the first major event for the aviation industry since the pandemic hit the world last year. Thus, it is the perfect opportunity for the globally dominant aircraft manufacturers to acquire new business. This year has already been good for Airbus as they have returned to making profits by delivering 460 aircraft until the end of October.

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Anupam is from Bilaspur, Chhattisgarh and is a pursuing freelance digital artist who creates photoshop and 3d artworks. Has always been passionate about writing and pursues it as a passion.

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