German aviation group Deutsche Lufthansa AG (DLAKY, DLAKF) said Wednesday that it has approved an order to purchase 25 more A320 family aircraft from airplane maker Airbus Group (EADSF, EADSY) as part of the modernization of its aircraft fleet.
The order is valued at about 2.5 billion euros at list prices. The airline will fund the purchase with its cash reserves or through external funding arrangements.
"This order for modern, fuel-efficient and quiet aircraft takes the Lufthansa Group a major step closer towards maintaining and expanding its market position by reducing its unit costs," Lufthansa said in a statement.
The airline's supervisory board approved the purchase of 15 fuel-efficient Airbus A320neo aircraft and ten Airbus A320ceo aircraft at its meeting earlier in the day.
The airline group said the A320neo aircraft will be delivered to its Swiss International Air Lines (SWISS) from 2019 onwards to replace older aircraft from the same family.
Meanwhile, the A320ceo aircraft will be delivered to Eurowings in 2016 and 2017 and will replace older Bombardier CRJ900s.
The A320neo is the most fuel-efficient variant in the best selling Airbus A320 medium-haul, single-aisle aircraft family. The efficiency of the aircraft is provided by the combination of Pratt & Whitney's greenest PurePower PW1100G-JM engines and large "sharklet" wing-tips.
The aircraft uses around 15 percent less fuel than comparable models today, reduces noise by 50 percent as well as slashes CO2 and NOX emissions.
The sharklet is an option on new-build A320 Family aircraft and offer operators the option of an additional 100 nautical miles range or increased payload capability of up to 450 kilograms. Sharklets are standard on all members of the A320neo family.
Lufthansa Group said it fleet is currently undergoing a fundamental renewal, with the Group currently having a total of 265 brand-new aircraft on order with a list value of 30 billion euros to date.
In the same month last year, Lufthansa placed an order for 25 Airbus A350-900 aircraft that will be added to its wide-body fleet, with deliveries starting as early as 2016. The order was part of the the largest single private-sector investment in the history of German industry of 14 billion euros that was split between Boeing Co. (BA) and Airbus.
In Frankfurt's XETRA exchange, Lufthansa shares are trading in Wednesday's regular trading session at 13.22 euros, down 0.05 euros or 0.38% on a volume of 2.08 million shares.
In Paris, shares of Airbus are trading at 49.00 euros, down 0.07 euros or 0.14% on a volume of 0.98 million shares.
by RTT Staff Writer
For comments and feedback: email@example.com