Business
Wizz Air Finalises A321neo Order
Wizz Air Finalises A321neo Order.
About this update from Wizz Air Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 5459A Wizz Air Holdings PLC 29 December 2017 \n\nWIZZ AIR SIGNS AGREEMENT FOR THE PURCHASE OF 146 AIRBUS A320neo AND A321neo AIRCRAFT\nPURCHASE PROVIDES FOR CONTINUED GROWTH & FLEET REPLACEMENT\nGeneva, 29 December 2017: Further to its announcement of the entry into a memorandum of understanding on 15 November 2017, Wizz Air Holdings Plc (the \"Company\" and, together with its subsidiaries, \"Wizz Air\"), the largest low-cost airline in Central and Eastern Europe, announces that it has completed and signed documentation with Airbus which, amongst other things, provides for the purchase of 146 Airbus A320neo Family aircraft (the \"New Airbus Agreement\"). This purchase will enable Wizz Air to deliver on its fleet replacement and expansion plans and to continue delivering strong growth for the next decade. \nAt current list prices, the order for 146 Airbus A320neo Family is valued in excess of US$17.2 billion, although Airbus has granted significant discounts from list prices to Wizz Air. The Company will retain flexibility in determining the most favourable method of financing the aircraft under the New Airbus Agreement.\nGiven the size of the commitments under the New Airbus Agreement relative to the Company, the purchase constitutes a \"class 1 transaction\" under the Listing Rules and therefore entry into the New Airbus Agreement is conditional upon Wizz Air shareholder approval. This approval will be sought at a General Meeting to be held in due course.\nNew Aircraft Order Providing Flexibility to Wizz Air\nWizz Air has an outstanding commitment to purchase a further 135 aircraft from Airbus, comprising 8 A320ceo aircraft and 17 A321ceo aircraft (the \"Existing CEO Order\") and 110 A321neo aircraft (the \"Existing NEO Order\"). All aircraft under the Existing CEO Order are scheduled for delivery by 2019 and all aircraft under the Existing NEO Order are scheduled for delivery by the end of 2024.\nThe New Airbus Agreement includes the purchase of 72 Airbus A320neos and 74 Airbus A321neos for delivery between 2021 and 2026 (inclusive). These aircraft will enable Wizz Air to renew its existing fleet and provide additional capacity for further growth. Airbus' A320neo Family aircraft provide additional efficiencies that will enable Wizz Air to offer even lower fares to the market and will ensure Wi...