In-principle agreement for up to 134 orders and purchase right options over 10 plus years with deliveries from FY24 onwards

Qantas has selected the Airbus A320neo and Airbus A220 families as the preferred aircraft for the long-term renewal of its domestic narrow-body fleet. A firm commitment for 40 aircraft – 20 A321XLR (extra long-range) and 20 A220 aircraft – is expected to be placed with Airbus by the end of FY22, following discussions with employees about arrangements to operate the new aircraft types and a final decision by the Qantas Board.

Qantas will also have a further 94 purchase right options on aircraft over a 10-plus year delivery window as its existing Boeing 737-800s and 717s are gradually phased out.

The order is in addition to Jetstar’s existing agreement with Airbus for over 100 aircraft in the A320neo family. Part of this new deal includes combining these two orders so that the Group can draw down on a total of 299 deliveries across both the A320 and A220 families as needed over the next decade and beyond for Qantas, QantasLink and Jetstar. Once finalised, this will represent the largest aircraft order in Australian aviation history.

Financial details of the deal are commercial in confidence but represent a material discount from list prices.

via: Qantas