European aerospace giant Airbus is reportedly nearing a deal to supply Viva Aerobus with a significant order of new aircraft. According to sources familiar with the matter the Mexican airline is set to acquire up to 40 A321neo-XLR narrow-body jets from Airbus in a deal worth approximately $3.2 billion at the listed price. Should the deal proceed it would represent a significant boost for Airbus in a financially perilous year.
The COVID-19 pandemic has hit the aviation industry particularly hard with airlines around the world forced to ground planes and cut routes in response to a collapse in demand. Major carriers have deferred or cancelled aircraft orders as they look to preserve cash while plane makers like Airbus and its main rival Boeing have been faced with the prospect of unsold stock and plunging revenues. Industry experts predict that it will take several years for demand for air travel to return to pre-pandemic levels making orders like the one from Viva Aerobus all the more crucial.
Founded in 2006 Viva Aerobus is a fast-growing low-cost airline serving the Mexican domestic market. The carrier currently operates a fleet of 41 Airbus aircraft including A320neo and A321neo planes. The addition of up to 40 new planes would more than double Viva Aerobus' current fleet enabling it to expand its domestic and international route networks.
The A321neo-XLR is Airbus' newest model in the A320 family of short- to medium-range passenger planes. The XLR variant boasts a range of more than 4500 nautical miles and can carry up to 244 passengers in a single-class layout. The XLR's extended range makes it a popular choice for airlines looking to add new long-haul routes to their networks while avoiding the expense of wide-body aircraft.
Sources report that Viva Aerobus has been considering an order for the A321neo-XLR for some time and that it has been negotiating with Airbus to secure favorable terms. The deal is expected to be signed in the coming weeks and would be a significant positive development for the struggling aviation industry.
