TIGERAIR today announced an order for 37 Airbus A320neo planes powered by Pratt & Whitney engines that will be delivered in stages between 2018 and 2025.
The A320neos will gradually replace the airline’s current A320ceos, offering better fuel efficiencies and up to S$40 million (US$31.4 million) in savings a year based on current fuel expenditure.
This model’s longer flight range will open new destinations to Tigerair’s flight network as well. Tigerair’s press statement said the total transaction is valued at US$3.8 billion according to the manufacturer’s list price, although the negotiated price was “significantly lower”.
Tigerair’s recent purchase agreement also includes the option to increase its order by up to 13 additional aircraft and convert the A320neos into the larger A321neo model.
Furthermore, the LCC is terminating its existing order of nine A320s that formed part of a bigger order dated 2007 which dictated that the nine aircraft would be delivered between 2014 and 2015.
Tigerair’s Group CEO, Koay Peng Yen, said: “We have recalibrated our strategy and taken the necessary steps to reposition Tigerair for a brighter future. This deal effectively dissipates some concerns over a potential capacity overhang in the next couple of years. It also allows us to continue building on our leadership position in budget travel at a measured pace.”
