Flying-Tiger
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Air Arabia Targets 25 A320 Order

Tue Jan 23, 2007 4:49 pm

A bit wishy-washy, but as far as I understand it they intend to replace their leased fleet with own frames:

Quote:
The low-cost carrier plans to use the funds to purchase as many as 25 planes over the next nine years. It currently leases nine Airbus A320s.



Quote:
At a list price of around $65 million for each A320, an additional 25 planes would cost Air Arabia $1.63 billion.



Quote:
Ali said Air Arabia hopes to open up new routes and frequencies to Cyprus, Greece, India, Turkey, Central Asia and within the GCC as the new aircraft gradually come online.

http://www.gulfnews.com/business/Aviation/10098840.html
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Flying-Tiger
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RE: Air Arabia Targets 25 A320 Order

Tue Jan 23, 2007 9:37 pm

Sounds a bit different now:

Quote:
The three-year-old carrier, which is owned by the government of the emirate of Sharjah, is in early talks with planemakers Airbus (EAD.PA: Quote, Profile , Research) and Boeing Co. (BA.N: Quote, Profile , Research) about buying their respective A320 and 737 aircraft models as it seeks almost to quadruple its fleet, CEO Adel Ali told Reuters by telephone.



Quote:
The airline will probably decide before July which aircraft type to buy and then make the order, Ali said, declining to be more specific. The planes, priced at between $50 million and $70 million each, will also go towards replacing the leased aircraft, he said.

http://today.reuters.com/news/articl...odLoc=InvArt-C1-ArticlePage2&sz=13
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2wingtips
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RE: Air Arabia Targets 25 A320 Order

Tue Jan 23, 2007 9:38 pm

From Reuters, it appears they are looking at both the 320 and 737.

DUBAI, Jan 23 (Reuters) - Air Arabia, a United Arab Emirates-based low-cost carrier planning an initial public offering, aims to order 34 short-haul aircraft worth $1.7 billion to $2.38 billion, its chief executive said on Tuesday.

The three-year-old carrier, which is owned by the government of the emirate of Sharjah, is in early talks with planemakers Airbus (EAD.PA: Quote, Profile , Research) and Boeing Co. (BA.N: Quote, Profile , Research) about buying their respective A320 and 737 aircraft models as it seeks almost to quadruple its fleet, CEO Adel Ali told Reuters by telephone.
 
BigTom
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RE: Air Arabia Targets 25 A320 Order

Wed Jan 24, 2007 1:51 am

http://www.gulfnews.com/business/Aviation/10098840.html

A clipping from a local newspaper. The reporter quotes the CEO as saying that they are looking at staying with one aircraft type.

Quote: Adel Ali, Air Arabia CEO, told Gulf News that the airline is committed to operating as a low-cost carrier and will focus on one aircraft type.

Cheers
 
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scbriml
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RE: Air Arabia Targets 25 A320 Order

Wed Jan 24, 2007 2:07 am

Quoting BigTom (Reply 3):
Adel Ali, Air Arabia CEO, told Gulf News that the airline is committed to operating as a low-cost carrier and will focus on one aircraft type.

Which is, of course, pretty normal. However, given that Air Arabia's current A320 fleet is leased, the increase in numbers to 25, and that the purchased planes will replace the leased ones, they would be silly not to look at both offerings.

While their history might indicate the A320 would be the preferred choice, Boeing has a chance to chalk up (I believe) just the second airline to drop A320s for 737s.
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EI321
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RE: Air Arabia Targets 25 A320 Order

Wed Jan 24, 2007 2:22 am

Quoting Scbriml (Reply 4):
Boeing has a chance to chalk up (I believe) just the second airline to drop A320s for 737s.

Would be interesting to look at what airlines have dropped A320s for 737s, and visa versa.

Which airline has dropped A320s for 737s? Air berlin has ordered 737NG, but as far as I know will operate them as a seperate fleet alongside their A320s like easyjet do.
 
manni
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RE: Air Arabia Targets 25 A320 Order

Wed Jan 24, 2007 10:36 am

Quoting EI321 (Reply 5):
Would be interesting to look at what airlines have dropped A320s for 737s

NH dropped the A32S for 737NG's. Not really a surprise, suprisingly they recently ordered 3 more A320s as interim aircraft until all their 737 arrive. These might have been some of the most profitable A320s ever...
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UAEflyer
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RE: Air Arabia Targets 25 A320 Order

Wed Jan 24, 2007 1:24 pm

They will expand from the IPO which will take place after two months, how-come few people here are saying that their aircrafts are leased and they are evaluating them now? could they evaluate leased aircraft
*evaluation is usually done for IPO
 
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Qatara340
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RE: Air Arabia Targets 25 A320 Order

Wed Jan 24, 2007 5:40 pm

It comes up in almost all order-announcement that XX company is in negotiations with both Airbus and Boeing, but in the end it is obvious which one is chosen.

I would assume that the A320 is the preffered choice because:
a. they already have those in their fleet
b. The 25 planes that are to be ordered will not come immediately in the same time; they will come gradually--therefore, there will be a parallel of the leased aircraft and the new ones side by side. Therefore, operating only one type is more cost-effective.
c. their cabin crew and pilots are already Airbus trained, so there is another reason.
d. It is the prefered choice of carriers in the Arabian Gulf--with the exception of Oman Air and Saudia.
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yowza
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RE: Air Arabia Targets 25 A320 Order

Wed Feb 07, 2007 12:08 am

I saw a segment on this on BBC World's Middle East Business Report. I knew they were doing well, as it turns out they were protfitable in just one year. The program said their going public was supposed to raise the capital to BUY 25 new frames for expansion in East Africa, Central Asia and the Asian sub continent. Seems like an ambitious venture given that their current fleet is only 8 frames.

Still there is definietly a market for an LCC in the Gulf and they seem to have carved themselves a nice piece of the market.

As for the order it has to be from the 320 family, it just would not make sense otherwise. One thing in this report that threw me; they mentioned traffic to the Philipines. Can the 320 profitably operate from Sharjah all the way to Cebu/Manila? My info plus greta circle mapper says no:

3065nm from SHJ looks like this. Philipines being well outside. Maybe a stopover?




YOWza

[Edited 2007-02-06 16:33:51]
 
sandrozrh
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RE: Air Arabia Targets 25 A320 Order

Wed Feb 07, 2007 12:25 am

Quoting QatarA340 (Reply 8):
I would assume that the A320 is the preffered choice because:
a. they already have those in their fleet
b. The 25 planes that are to be ordered will not come immediately in the same time; they will come gradually--therefore, there will be a parallel of the leased aircraft and the new ones side by side. Therefore, operating only one type is more cost-effective.
c. their cabin crew and pilots are already Airbus trained, so there is another reason.
d. It is the prefered choice of carriers in the Arabian Gulf--with the exception of Oman Air and Saudia.

e. Air Arabia ha sjust recently signed a 10 years (iirc) contract with SRTechnics for maintenance of their whole A320 fleet. Dropping these A320s in favor of 737s and thus cancelling the contract is going to cost them a hell of a lot.
 
KL808
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RE: Air Arabia Targets 25 A320 Order

Wed Feb 07, 2007 12:36 am

Quoting YOWza (Reply 9):
Can the 320 profitably operate from Sharjah all the way to Cebu/Manila?

It can, with a stop over probably at BKK.

SHJ-BKK-MNL/CEB

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yowza
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RE: Air Arabia Targets 25 A320 Order

Wed Feb 07, 2007 12:44 am

I forgot to add this snippet to my last post. Air Arabia's CEO was claming to have a network wide load factor above 80%. Just thought I shold share that with you as it has an impact on the airlines appeal when it goes IPO.

YOWza