Shorthaul fleet order

RNS Number : 7339L

International Cons Airlines Group

14 August 2013

 



SHORTHAUL FLEET ORDER

International Airlines Group (IAG) has secured firm orders and options for up to 220 Airbus A320 family shorthaul aircraft - up to 120 of these for its subsidiary Vueling. The new aircraft will enable the Barcelona-based airline to replace some of its existing A320 fleet and expand its business.

The Vueling agreement comprises 62 firm orders - 30 A320ceo and 32 A320neo - plus 58 options. The firm orders will be delivered to Vueling between 2015 and 2020.

In addition, IAG has secured 100 A320neo options which could be used for any of the airlines in the Group - British Airways, Iberia or Vueling - for aircraft replacement requirements.

IAG chief executive, Willie Walsh, said: "Vueling has managed to successfully expand its business profitably by targeting both growth markets and those areas where weak competitors are reducing capacity. These new aircraft will enable Vueling to continue that expansion and replace some of its older fleet with modern, fuel efficient aircraft, leading to further unit cost reductions.

"The benefits that the merger brings to all our airlines are highlighted once again. In addition to the Vueling order, we have also been able to secure a further 100 A320neo options for all the airlines in the Group".

The Vueling firm orders are subject to approval by IAG's shareholders. This order will be reviewed alongside the recent IAG longhaul orders for Boeing 787s and Airbus A350s, at a shareholder meeting later this year.

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August 14, 2013                                                                                                            IAG21

Notes to editors:

Vueling has 70 A320 family aircraft in its fleet currently.

The table below sets out the aircraft list prices, as at January 2012 (being the sum of the airframe list price, engine option list price and the price of certain assumed specification change notices) against which price concessions are made. IAG has negotiated a very substantial discount from the list prices set out below:

A320ceo aircraft US$81.8 million

A320neo aircraft US$92.0 million

Forward-looking statements:

Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and International Consolidated Airlines Group S.A. (the 'Group') plans and objectives for future operations, including, without limitation, discussions of the Company's Business Plan, expected future revenues, financing plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. It is not reasonably possible to itemise all of the many factors and specific events that could cause the Company's forward-looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy.  Further information on the primary risks of the business and the risk management process of the Group is given in the Annual Report and Accounts 2012; these documents are available on www.iagshares.com.

 

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