Close on the heels of Indian low-cost carrier IndiGo this month announcing that it would buy a record 180 A320s airplanes form European aircraft manufacturer Airbus, Virgin America yesterday signed an order for 60 new single-aisle A320 airplanes.
Airbus said that it has received a firm order from Virgin America for 60 A320s, including 30 for its fuel efficient A320neo aircraft.
Although both companies have not revealed the financial terms of the order, the total package is believed to be as much as $5.1-billion based on list price. Traditionally Airbus does not disclose the contract sale price due to competitive reasons but offers steep discounts from list price.
''At just three years old and at a time when many carriers are contracting, we're pleased to be growing and bringing our award-winning service to new markets,'' said Virgin America president and CEO David Cush.
''We credit a great deal of our success to date to having the right aircraft. The low operating costs, cabin comfort and carbon-efficient design of our all-new Airbus A320 fleet has helped fuel our growth and success in the North American market - and we're confident the A320neo will only build on that,'' he added.
The A320neo, which stands for 'new engine option,' comes after Airbus said in November that it would update its A320 airplane with new fuel efficient engines and have large wing tip devices called Sharklets which will help save fuel by as much as 15 per cent.