Spirit Airlines is under process of expanding its fleet and has finalized a deal with the aircraft manufacturer Airbus to buy 100 single-aisle jets. A memorandum of understanding has been signed between the airline and the European based plane-maker. The agreement includes a mix of the Airbus A319neo, A320neo and the A321neo models. According to the 2018 list prices, the deal between the parties is expected to be around $12 billion in sales. But reports say that the airline has managed to get a deep discount from the aircraft manufacturer.
The aircrafts are expected to be delivered by the end of 2027. There was also an option to buy about 50 additional aircrafts that was agreed upon. Spirit is known for being the low-cost carrier that operates mainly in and around South Florida. At present the airline has a fleet that has airbus aircrafts only. Ted Christie, the president and CEO said that the new order of aircrafts has marked another milestone for the airline. Christie added that the additional fleet of aircrafts that have been ordered will be used to support the growth of the airline as it will add new destinations and would look in to expanding their network across the US, Carribbean and Latin America.
The recent deal can prove to be good for the Airbus as Washington is all set to impose some new tariffs on the aircrafts that are sold in the United States. At the same time it is still not known of the airline has talked with the aircraft manufacturer about the discounts in the tariffs. However, the tariffs related talks could not be applicable as the Airbus does not make its A320 aircrafts in the state of Alabama. Spirit has faced a fall in stocks around 35 percent which happened due to guidance in July, 2019 that had suggested that the per share earnings in 2019 would be flat.
Spirit Airlines had first started off as a trucking company known as Clippert Trucking Company in the year 1964. It got its name Spirit Airlines in 1992.
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