Kuwait's low-cost carrier, Jazeera Airways, dealt a big blow to Airbus last week, cancelling 25 of the 40 A320s it ordered in 2007. However, it still held out a glimmer of hope for the European manufacturer saying it would consider picking up the re-engined A320neo, which the manufacturer claims will deliver higher levels of fuel efficiency than the older A320s.
Chairman Marwan Boodai said in a statement that the decision was driven by "the overcapacity we've seen in the market in 2009 and 2010, when we saw close to half the seats offered by our peers on the routes we operated were being flown empty."
He added that the carrier "might revisit this decision in the future as Airbus introduces new A320 models to the market."
Jazeera took delivery of a new A320 in January 2010, bringing its fleet to 11 of the type, six of which it operates. It leases five A320s through its Sahaab Aircraft Leasing subsidiary.
Jazeera will take delivery of four A320s still on order from 2012-2014.
The airline said it earned a Kuwaiti Dinar 6.4 million ($23.1 million) net profit in the second half of 2010.