Greek carrier Aegean Airlines has signed a Memorandum of Understanding (MoU) with Airbus for up to 42 A320neo family aircraft, comprised of firm orders for 20 A320neos and 10 A321neos plus options for another 12 A320neos via lessors.
The airline says the deal is valued at approximately US$5 billion at list price and is Greece’s largest ever private investment. Aegean currently operates a fleet of 46 Airbus aircraft (37 A320s, eight A321s and one A319), as well as 12 turboprops.
The airline said it is proceeding with the MoU after completion of a tender process, and that its options include further conversions from A320neos to A321neos if needed.
Aegean says it will also decide by July this year on its engine choice from either Pratt & Whitney (PW1100G-JM) or CFM International (LEAP-1A), with negotiations underway at present. The completion and signing of the final purchase agreement with Airbus is expected in June.
The carrier is underway with an overall fleet expansion and renewal programme that is expected to take place between 2020 and 2025. Vice-chairman Eftichios Vassilakis said the agreement “marks the beginning of a new period of growth and development for Aegean. With the investment in new generation Airbus A320neo aircraft, we strengthen our competitiveness and provide a platform that empowers our people to further improve service to our passengers as well the important first impression we provide to visitors of our country.”
Dimitrios Gerogiannis, CEO, added that the airline had “worked diligently over more than 12 months, across different teams within Aegean to structure as well as to evaluate the proposals of the two candidate manufacturers, before selecting Airbus. Our goal was to optimise support conditions but also to set a new starting point for the design of the aircraft’s future exploitation. The technology in these aircraft is excellent. But this is available to many operators. It only becomes a competitive advantage thanks to our people, their skills, co-operation and ethos, which should allow us to differentiate ourselves and excel once more.”
