JetBlue to Order 60 Airbus CSeries Jets -- Update
10 Julho 2018 - 9:28PM
Dow Jones News
By Andrew Tangel and Robert Wall
JetBlue Airways Corp. on Tuesday said it would buy 60 CSeries
jetliners from Airbus SE with options for more, as the European
plane maker's rivalry with Boeing Co. extends into the market for
smaller planes.
Airline executives said the new aircraft would expand the reach
of the smaller aircraft in JetBlue's fleet, allowing them to take
transcontinental U.S. flights while burning 40% less fuel per
seat.
The JetBlue Airbus A220-300 planes would also offer wider seats
and more capacity that could include the airline's premium seats,
they said.
"It's truly the next generation of aircraft that customers will
love," JetBlue Chief Financial Officer Steve Priest said in an
interview. He added the new planes would also boost the airline's
profit potential.
JetBlue is already a big Airbus customer. But the New York-based
carrier also had considered upgrading or replacing its fleet of
small jets made by Brazil's Embraer SA rather than purchasing the
rebranded CSeries that Airbus took control of on July 1 in a
partnership with Canada's Bombardier Inc. Mr. Priest said it was a
"very, very difficult decision."
That decision will intensify the rivalry that drove Airbus and
Boeing to seek partnerships with smaller plane makers. Airbus and
Boeing are looking to their respective partners, Bombardier and
Embraer, to yield cost savings by helping pressure suppliers to
offer bigger volume discounts.
The deal could be worth around $5 billion before discounts
standard to such contracts. JetBlue executives declined to say how
much the airline will pay for the airplanes.
Mr. Priest said JetBlue expected to take delivery of the first
five of the new planes in 2020, with the rest coming by 2025 as
Airbus ramps up production. The carrier said it had options for 60
more of the planes.
Boeing said last week that it will take control of Embraer's
jetliner business. The plan requires government approvals and isn't
expected to close until late next year. Until then, Boeing is
barred from marketing Embraer's planes.
A Boeing spokesman declined to comment on JetBlue's purchase
from Airbus.
Bombardier had struggled to win big orders for the
fuel-efficient CSeries outside of a 75-jet deal in 2016 with Delta
Air Lines Inc. Bombardier lacked the sales heft of Airbus and
Boeing to convince airlines to commit to a brand- new plane.
Airbus on Tuesday put its stamp on the program, renaming the
jets the A220-100 for the 100-seater model and A220-300 for the
130-seater. It is dropping the earlier CSeries CS100 and CS300
designations. The JetBlue A220-300 planes will be assembled at
Airbus's U.S. production site in Mobile, Ala., the airline
said.
Airbus Chief Executive Tom Enders last week said the first
results of the CSeries takeover would be visible soon. The
Toulouse, France-based plane maker said it doesn't comment on
discussions with potential customers.
The fortunes for the CSeries began to improve in 2016 when Delta
agreed to buy 75 CSeries planes with options for 50 more. Boeing
challenged the deal with U.S. regulators, accusing the Canadian
rival of unfairly selling the plane below cost. A U.S. trade panel
ruled against the Chicago-based manufacturer.
Bombardier is building an assembly plant in Alabama to build
CSeries jets for the U.S. market.
JetBlue also said it would upgrade 25 orders for Airbus A320neo
single-aisle planes to larger A321neo models. Mr. Priest said the
changes wouldn't pave the way for potential flights to European
destinations, as such routes would require additional upgrades.
Write to Andrew Tangel at Andrew.Tangel@wsj.com and Robert Wall
at robert.wall@wsj.com
(END) Dow Jones Newswires
July 10, 2018 20:13 ET (00:13 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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