Airbus has finally received firm aircraft orders from the low-cost US carrier Spirit Airlines (SAVE), Reuters reported this Monday. According to Reuters, Spirit has finalized its previous commitment to buy 100 narrow-body commercial airplanes from the European aircraft manufacturing giant. Notably, Spirit had signed a memorandum of understanding with Airbus in late October to purchase these planes.
The latest agreement includes a combination of Airbus’ A320neo family of aircraft—A319, A320, and A321 models. The deal is likely to be worth $12 billion at the list price. However, Reuters noted that airlines generally receive at least a 50% discount on such large contracts. According to the agreement, Airbus would deliver these aircraft through 2027. The new contract gives Spirit an option to place additional orders for 50 Airbus commercial jets.
In its October 23 press release, Spirit stated that new aircraft additions would help it expand its network. The airline’s president and CEO, Ted Christie, said, “The additional aircraft will be used to support Spirit’s growth as we add new destinations and expand our network across the U.S, Latin America and the Caribbean. We look forward to working with our valued partners at Airbus to finalize our agreement.”
The low-cost US carrier currently operates an all-Airbus fleet and owns 144 A320 aircraft. The company expects to receive another 48 A320neo aircraft from Airbus in the next two years. As of November 30, 2019, Spirit Airlines had unfulfilled orders of 38 airplanes with Airbus. Airbus’ December order book would reflect Spirit Airlines’ new aircraft requests.