(Bloomberg) –Air Arabia PJSC ordered 120 Airbus SE narrow-body jets worth about $14 billion at list prices, as the European planemaker scored its second blockbuster order of the day at the Dubai Airshow.
The agreement includes 73 of the flagship A320neo, with a mix of the larger A321neo and long-distance A321XLR variants making up the remainder. Air Arabia is already an Airbus operator.
“The A321 is a game-changer for Air Arabia’s business,” Chief Executive Officer Adel Ali told reporters. He said the planes would allow the discount airline to expand in southeast Asia and Africa.
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The company is also working on a joint-venture plan with Etihad Airways, which it expects to become operational by the second quarter of 2020.
Bloomberg reported on Oct. 31 that Airbus was working to pin down the order. Earlier Monday, Airbus locked down a $16 billion wide-body order with long-distanced carrier Emirates.
Ali told Bloomberg in February that he was considering a triple-digit jet deal with Airbus or Boeing to add destinations in Southeast Asia, Australia, Africa and Europe. The company already ranks as the biggest discount carrier in the Gulf and North Africa.
A jet purchase would potentially help the Sharjah-based airline establish the planned jointly owned carrier, Air Arabia Abu Dhabi, announced last month. Etihad is paring orders and shrinking its own network after racking up almost $5 billion in losses over three years.
Air Arabia operates a multi-hub business with bases in Morocco and Egypt, as well as Sharjah and Ras Al Khaimah in the United Arab Emirates. It has a fleet of about 50 A320 aircraft together with a handful of leased A321neos.
