European plane maker Airbus (EADSY, Financial) received an order from Frontier Airlines for nine A321 narrow body jets on Nov.24. This is the first time Frontier Airlines has ordered the A321, which is the largest plane of the A320 family. Presently, the airline flies 35 A319ceo and 20 A320ceo planes. Apart from the current order, Airbus has a backlog of 80 A320neo aircraft.
The deal in details
The deal is worth $1 billion at list price. The latest order for Airbus A321 is for the “current engine option”, not for its re-engineered version A321neo, where neo stands for “new engine option.” The A321neo recently had its first flight in September.
Frontier has not yet given its preference for the specific engine that it would like to get fitted into the plane, nor has it discussed the seat configuration of the airplane. The delivery time of the plane has also not been discussed.
Airbus A321
Why the A321
Frontier Airlines’ fleet consists of A320 family planes and the carrier continues to focus on this family jets for its future fleet. The airline is currently in the phase of transforming its image into an “ultra low-cost carrier.” It is therefore looking to create a fleet that helps it gain operational economies and reduce costs. This would enable it to attract more passengers through offering lower fares.
"We continue to come back for more A320 Family aircraft because they fulfill our mission of providing low fares through low operating costs," said Frontier CEO David Siegel.
The A321 aircraft fits the bill perfectly as it can seat more passengers. This will help the airline maintain lower fares and satisfy its customers’ expectation. The airline started converting its fleet to an all Airbus aircraft more than a decade ago in 2001, when it took the delivery of its first Airbus plane. The carrier has had a good experience flying the Airbus single aisle plane. Not only has Frontier flown the plane on different routes and expanded its network, but it has also managed to lower operating costs.
Frontier is focused on providing low fares to its customers but without compromising on services. Airbus COO John Leahy touts the A320 family of aircraft that not only offers carriers low operating charges, but at the same time provides a great air travel experience to the passengers. The A321 has wider seats that improves the comfort level of air traveling with an improved cabin design. This is why Airbus’ top selling plane continues to be Frontier’s favorite.
Tough competition to Boeing’s 737 family
As orders for its A320 family keeps increasing, Airbus is giving Boeing (BA, Financial) a tough run for its money in the narrow body segment. The French plane manufacturer dominates this segment of the aviation market, though Boeing isn’t far behind. But every order gives Airbus a leg up as Boeing, too, is pushing up with its 737 family. The A320 is the most popular narrow body at present, with close to 11,000 orders so far. Of this, the company has delivered 6,200 planes to as many as 400 airline customers. Its popularity can be well weighed by the fact that every two seconds, an A320 family aircraft either lands or takes off.
Boeing is also bagging plenty of orders for its 737 and the re-engineered 737 Max family. However, it should be noted that Airbus A320 entered service two decades after the 737. Despite such time gap, it has successfully managed to create ripples in the aviation market. The fight between the two behemoths continues as each tries to outdo the other.
