Dubai Airshow sees a host of deal-making with budget airlines making waves
Dubai — Airbus’s patience paid off on Wednesday, with an order for a record 430 of its A320neo-family jets, while Budget airline flydubai committed to buying 175 Boeing 737 Max jets. Airbus landed the deal as US investor Bill Franke raised his bet on budget airlines. The preliminary deal, worth up to $50bn, is designed to supply four airlines in which Franke’s Indigo Partners has stakes: Frontier Airlines, Mexico’s Volaris, Chilean carrier JetSmart and Hungary’s Wizz Air. Franke signed the agreement at the Dubai Airshow amid a flurry of deal-making, as airlines take advantage of a recent slowdown in demand for new aircraft to negotiate competitive prices from leading manufacturers. Airbus said it expected to finalise its agreement with Franke in the coming weeks. Flydubai’s Boeing dea is worth about $21bn at list prices. The two deals again underscore how budget carriers are rewriting the rule book by combining bargain fares augmented by optional services and upgrades for which pass...
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