ULCCs and New Airbus Orders
09-09-2020, 12:44 PM
#1
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Joined APC: Oct 2019
Posts: 150
ULCCs and New Airbus Orders
Prior to COVID, both Spirit and Frontier had ambitious growth plans with large orders of new Airbus A320neo family aircraft on the books. Spirit had agreed to purchase an additional 100 Airbus aircraft + options fo 50 more. Meanwhile, Indigo Partners had a book order of 430 A320neo aircraft with over 100 of those earmarked for Frontier Airlines here in the U.S. (to include XLRs).
Obviously the pandemic has completely upended the industry, but does anyone have any insights into what Spirit and Frontier are doing in regards to aircraft deliveries? Bill Franke at Indigo Partners reaffirmed their aircraft order back in June for all 430 aircraft, which, IMO, is gutsy given the current state of the industry and lack of recovery late summer. Are these orders being cancelled, deferred, or on schedule? Any insights into whether or not the ULCCs have been managing to capture more market share in the downturn, even if the yields are low to negative?
Obviously the pandemic has completely upended the industry, but does anyone have any insights into what Spirit and Frontier are doing in regards to aircraft deliveries? Bill Franke at Indigo Partners reaffirmed their aircraft order back in June for all 430 aircraft, which, IMO, is gutsy given the current state of the industry and lack of recovery late summer. Are these orders being cancelled, deferred, or on schedule? Any insights into whether or not the ULCCs have been managing to capture more market share in the downturn, even if the yields are low to negative?
09-09-2020, 12:48 PM
#2
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Joined APC: Dec 2018
Posts: 999
Frontier is still getting new aircraft delivered every month, although I believe the delivery schedule was renegotiated. Nobody really knows what indigo’s thoughts and plans are, but there are two main sentiments amongst the pilot group (I’m not saying either is correct. Just what I hear the most from talking to others): Frontier is in serious trouble OR F9/Indigo is holding back, growing the fleet in the background, conserving cash where they can and plans to come out swinging on the backside of all of this.
My thought is that they will try to negotiate early lease returns on all of our CEO aircraft and hasten the transition to an all NEO fleet.
My thought is that they will try to negotiate early lease returns on all of our CEO aircraft and hasten the transition to an all NEO fleet.
Last edited by TOGALOCK; 09-09-2020 at 01:22 PM.
09-09-2020, 08:33 PM
#4
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Joined APC: Jun 2016
Posts: 629
F9 is still receiving acft with a few delayed and added to next year. The large order so far remains unchanged. Frontier is receiving 130 or so of the large order.
Just like the others the focus is on conserving cash. Indigo was however in round 2 of bidding to purchase Virgin Australia up until around June of this year. That was more than a few months into the Covid nightmare so they were apparently able to financially support another airline.
Just like the others the focus is on conserving cash. Indigo was however in round 2 of bidding to purchase Virgin Australia up until around June of this year. That was more than a few months into the Covid nightmare so they were apparently able to financially support another airline.
