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Airbus wins massive Amadeo contract

Article By: ,  Financial Analyst
February 12, 2014 1:15 PM

Airbus has announced it has won a major order for its planes at the Singapore Airshow.

The deal with UK-based leasing company Amedeo for 20 A380 superjumbo jets worth a total of $8.3 billion (£5 billion) was finalised at the event this week.

Amedeo, which used to be called Doric Lease Corp, first announced the provisional purchase of the new aircraft at the Paris Airshow in June.

Mark Lapidus, chief executive of Amedeo, explained that his company has opted for the A380 superjumbo jets as they offer "on-board space and comfort combination" at the lowest per-seat unit cost. He added: "As world air traffic continues to double every 15 years and airport infrastructure and slots do not, the A380 is the best solution for airlines to capture that growth and build passenger loyalty."

John Leahy, chief operating officer of Airbus, stated that the order from Amadeo is the latest indication of the strong levels of appeal the A380 superjumbo jets have in the industry.

Full year results

Airbus recently announced that it had a highly successful 2013, although results show that it was outperformed by its major rival Boeing. But Mr Leahy claimed this does not matter to Airbus at all, stressing: "I think we're happy with what we've got. It's a duopoly, with a 50-50 split here. I don't really care if they have two more airplanes or we have two more."

Earlier in the month, Airbus also received an order for 100 planes worth more than $9 billion from low-cost Vietnam carrier VietJetAir, as the firm enjoys a strong start to the new year. Airbus A320s make up the majority of the massive order, which the airline is hoping will help it to lower its operating costs.

Airbus' A380 superjumbo is currently one of the most dominant aircraft in the market after it entered service in 2007. Each plane is able to carry more than 500 passengers and Airbus revealed on its launch that it aimed to get 750 total orders for the double-decker plane.

Shares in Airbus Group are 0.15 per cent down at 12:47 GMT today (February 12th) on the back of the news.

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