ALAFCO orders 35 additional A320neos

The firm contract is an increase of the previous agreement signed at the 2011 Dubai Airshow for 50 A320neo aircraft.
 
Ahmad A. Alzabin, ALAFCO Chairman and CEO said: “After a full analysis, we concluded that the A320neo will continue to be in strong demand, therefore, we are seizing the opportunity to secure an additional 35 aircraft to meet the future requirements of our customers. The A320neo is the market’s favourite single-aisle aircraft family.

“The significant fuel burn savings it offers, combined with the operational reliability and cost effectiveness of the A320 Family, make it an absolute “must have” in our portfolio.”
 
John Leahy, Airbus Chief Operating Officer Customers said: “Higher fuel prices means airlines require fuel efficient aircraft and with the A320neo offering a 15 per cent fuel burn reduction, it is the ideal investment. The A320neo reduces operating costs whilst enabling airlines to offer the best cabin comfort levels.
 
“This significant order from ALFACO confirms that the neo ticks all the right boxes and is clearly the best product on the market.”

Industry analyst Saj Ahmad said: "ALAFCO is making a smart play for additional A320neo's. It's a highly sought after airplane and given the inherent presence of A320's across the GCC region today, it makes sense that adding a new fuel efficient model due to debut in late 2015 will allow them to both target customers who may not have enough capital to get early slots from Airbus and also gives ALAFCO the ability to charge a premium for these jets with higher lease rates - after all, if airlines want to cut fuel bills and have new airplanes without placing an order directly with Airbus, they will have to pay for that privilege.
 
At the other end of the spectrum, its widely believed that ALAFCO will also sign up for a similar number and mix of Boeing 737MAX airplanes. Clearly the GCC target customer here is flydubai, but there's also a good chance that ALAFCO is looking to spread its wings beyond the GCC and the investment in new single aisle jets will help elevate their ranking as a growing and influential leasing agent."