SAS closes in on big Airbus order

Deal would include up to 50 A320neo aircraft.

SAS is in talks with Airbus about buying a significant number of A320neo aircraft for its short-haul fleet, up to 50 of them according to some sources. A deal is expected this spring after the airline stopped negotiations with Boeing, its finance chief told the news agency Reuters.

SAS is in talks with Japanese investors, Goran Jansson also revealed, about a Japanese operating lease with a call option, or JOLCO, to fund the purchase.

JOLCO is a little-known aircraft financing structure that SAS already uses, where planes are leased from a Japanese investor and the airline has a buyout option.

Out with the Boeings
Jansson, who will start a new role plotting strategy at the airline in March, has said previously that SAS needs to invest in 40 to 50 new aircraft in addition to those already on order. The list price for an A320neo is $108 million.

SAS is currently trying to renew its elderly and fuel-intensive fleet, such as its older Boeings, in the face of low-cost competition. Back in the black after years of struggling, it is forging ahead with new efforts to stay competitive, such as setting up bases outside Scandinavia to cut staff costs.

Related stories

New face at SAS for “key strategic ventures”

SAS premieres new aircraft type

Wizz Air agrees massive Airbus deal


Check Also

ACJ320neo, distance, Airbus, ACJ319neo, corporate, business, jet, travel, aircraft, plane, fuel, efficient, economical, engines, passengers

Airbus unveils first ACJ320neo corporate jet

The fuel-efficient aircraft with the “widest and tallest cabins of any large business jet” heralds a new era for Airbus.

Norway, tourism, economy

Travel brings billions to Norway’s economy

A new survey shows that foreigners flying to Norway with Norwegian, SAS and Widerøe are boosting the economy in a big way.

SAS, delays, flights, travel, SAS, Norwegian, Icelandair, Europe, airlines, biggest, longest, summer, July, Finnair, KLM

Flight delays skyrocket in Nordics and Europe

SAS is not the only airline struggling to keep to its timetables this summer, with Icelandair and Norwegian faring worse.

SAS, cancel, flight,Vilnius, subcontractors, delay, staff, employees, workforce, management, opinion, Microsoft, Søren Rasmussen

SAS cancels 40 more flights this week

As staffing problems keep forcing cancellations, one long-time passenger explains why he’s giving up on SAS.

The crisis in European airspace

Never have so many flights been cancelled or delayed, and the increasing costs for airlines will impact their 2018 financial results.

Airlines will buy 42.700 new commercial aircrafts

Boeing estimates a huge demand for new aircrafts and services over the next two decades, mainly in the low-cost segment.