Further to its announcement of the entry into a memorandum of understanding on June 18, 2015, Wizz Air Holdings Plc, together with its subsidiary Wizz Air, has completed and signed the purchase agreement with Airbus for the purchase of 110 A321neo airliners. The airline says the deal, known as “The New Airbus Agreement,” will enable it to deliver on its fleet replacement and expansion plans and to continue delivering strong growth for the next decade.
At current list prices, the order for 110 A321neos is valued in excess of US$13.7 billion, although Airbus has granted significant discounts from list prices to Wizz Air.
The move is conditional upon receiving Wizz Air shareholder approval, which will be sought at a general meeting to be held in due course.
Wizz Air already has an outstanding commitment (which the company refers to as “The Existing Order”) to purchase a further 48 aircraft from Airbus, comprising 21 A320ceo aircraft and 27 A321ceo aircraft. The first Wizz Air A321ceo aircraft will enter service in November 2015 and will be equipped with 230 seats. All aircraft under the Existing Order are scheduled for delivery by 2018, however, under the an amendment agreement entered into which is conditional on the New Airbus Agreement coming into force, ten A320ceo aircraft currently scheduled for delivery in 2018, under the Existing Order, will be cancelled.
The New Airbus Agreement includes the purchase of 110 Airbus A321neos for delivery between 2019 and 2024 inclusive.
Of the 110 aircraft to be delivered to Wizz Air under the New Airbus Agreement, 51 aircraft will be for the planned replacement of existing aircraft when they are returned to lessors or sold between 2019 and 2024.
The New Airbus Agreement also provides for purchase rights for the acquisition of an additional 90 A321neo aircraft. These purchase rights can be exercised in four batches by June 2017, June 2018, June 2019 and June 2020, respectively.
Under the terms of the New Airbus Agreement, the Company is required to select the engines to be installed on the new aircraft by December 31, 2016.