IBERIA DECIDES TO ORDER 79 NEW AIRCRAFT FOR THE RENEWAL OF SHORT AND MEDIUM HAUL FLEET
The agreement includes 30 firm orders and 49 options
The aircraft will be delivered between 2006 and 2011
It is the greatest fleet renewal of Iberia’s history
The new aircraft have a lower fuel consumption and imply a reduction of maintenance costs
Madrid, 25th February 2005
Iberia has decided today the acquisition of up to 79 new aircraft of the Airbus A320 family to renew its short and medium haul fleet.
The agreement includes 30 firm acquisitions and 49 options. In the first case there will be 15 Airbus A318, nine A320 and six A321. The delivery period of the aircraft, firm and options, will be from 2006 to 2011.
These new aircraft will replace 19 MD-87, 13 MD-88, 7 Boeing 757 and the oldest Airbus A320.
Total aircraft catalogue price amounts to more than $4,500 million, over which the Company has obtained important discounts.
This agreement is the greatest one ever decided by Iberia, overcoming the contract signed in 1998 also for the short and medium haul renewal that included the incorporation of up to 76 aircraft (50 firm and 26 options) of the Airbus A320 family.
Advantages and opportunities for Iberia
With this fleet renewal, Iberia will have a unique model of short and medium haul aircraft, the family Airbus A320, with four different sizes to adapt to each market (between 120 and 200 passengers). This will give flexibility and lead to an improvement of both aircraft and crew productivity. Likewise, the need of spare parts, time and costs of crew training will be reduced. Finally, the new aircraft have lower fuel consumption and maintenance costs.
The negotiation of the fleet renewal in this moment has led Iberia to take advantage of the current situation, with a strong euro against the dollar, low interest rates and a strong competition between the manufacturers.
Iberia has obtained financial support from Airbus that will allow the financing of an important part of these aircraft under operating lease. Thus, thanks to the economic and financial conditions of the agreement, Iberia will be able to compete with the low cost carriers in the short and medium haul with the same or better fleet costs. On the other hand, the Company will have a high degree of flexibility in the short and medium haul to continue to quickly adapt to the evolution of the markets.
The negotiation process has been characterized by a strong competition and professionalism, which Iberia wants to highlight and thank to both manufacturers, Airbus and Boeing. The fleet renewal is a constant process and the Company will have to face the selection of future long haul aircraft, being Boeing 787 and Airbus A350 the most interesting options.
Finally, it is worth noting that Iberia will have to take the decision about the engines that will equip these aircraft among the models CFM (General Electric and SNECMA), IAE (Rolls Royce, Pratt & Whitney and others) or Pratt & Whitney (in the case of the A318)
