Lufthansa confirms $2.8 billion A320neo order

Order is for 25 A320neo and five A321s, due to be delivered from 2016

After weeks of speculation, as previously reported, Lufthansa has confirmed that it has placed an order for 25 of Airbus’ new A320neo-series aircraft and five of its larger A321s, in total valued at around $2.8 billion at list prices. The planes are due to be delivered from 2016. This is a major success for Airbus as it is the first commitment for the A320neo from a top global flag carrier, albeit the fourth overall. Virgin America Inc will buy 30 neo planes, India’s IndiGo agreed to buy 150 and Brazil’s Tam has ordered 22. The neo is basically the same as Airbus’s existing short-haul A320 but with new engines that use 15% less fuel.
Lufthansa explains that it is replacing many of its smaller regional planes with bigger models, renewing its fleet in an effort to cut costs. The carrier has also made a $1.35 billion order for five Boeing 777 cargo aircraft. “Besides greater fuel efficiency, all the models on order will help lower operating costs as well as noise levels and emissions,” the airline says. “The orders are yet further steps in Lufthansa’s ongoing fleet modernisation and expansion policy.”
Airbus and Boeing make a significant proportion of their revenues from single-aisle aircraft. Boeing is closely watching developments related to the A320neo-series and is expected to make a decision on whether to upgrade its own 737 model by the summer.