430 Planes Sold by Airbus to Indigo for $49.5 Billion

On Wednesday, the Airbus has announced that the company will sell its 430 airplanes to a U.S firm Indigo Partners for 49.5 billion U.S dollars and it has been considered the biggest deal ever to the European firm. The announcement came at the Dubai Air Show and the deal includes 273 A320neos and 157 A321neos. The airlines that use the aircraft will include Wizz Air of Hungary, Frontier Airlines, JetSMART of Chile, and Volaris of Mexico. A320neos list for 108.4 million U.S dollars apiece and A321neos at 127 million U.S dollars. Airlines and manufacturers often negotiate big deals with lower prices like these. Indigo Partners is a Phoenix-based private equity firm and it owns Denver-based Frontier Airlines and owns part of Mexico’s Volaris. It is being managed by William Franke and the firm has been considered a pioneer of the cheap tickets and high fees airline business.

Airbus sold to Indigo

The company has spread overseas and now it is growing in the United States. The previous biggest-ever sale from Airbus came in the month of August 2015. The company then sold 250 A320neos to Indian budget airline IndiGo and this deal was estimated at 26 billion U.S dollars at list prices. IndiGo and Indigo Partners shouldn’t be considered the same, both are separate firms with separate administration and management. Prior to Wednesday, there was only a major deal announced at the Dubai Air Show on Sunday. The long-haul carrier Emirates then purchased 40 Boeing 787-10 Dreamliners in a deal of 15.1 billion U.S dollars. The Airbus is based in Toulouse, France. The company has shown its hopes of continuing production of its A380 double-decker jumbo jet on Emirates.