Northwest Airlines to Upgrade Fleet with $1.2 Billion Order from Airbus

Strategic Insights -

Northwest Airlines announced plans to buy 30 Airbus Industrie A-319 and A-320 planes valued at $1.2 billion, converting long-standing options into firm orders. The deal is part of the airline's effort to update its aging aircraft fleet, which has the oldest fleet among major U.S. airlines. The new planes will replace 38 Boeing 727s built in the late 1960s and early 1970s, providing quieter, more comfortable, and more reliable travel for passengers.

Key Takeaways:

  • Northwest Airlines will acquire 30 Airbus Industrie A-319 and A-320 planes valued at $1.2 billion.
  • The deal involves converting long-standing options into firm orders for 18 A-319s and 12 A-320s.
  • The new planes will replace 38 Boeing 727s, which are being phased out due to their age and fuel inefficiency.
  • The Airbus aircraft are quieter, more comfortable, and more reliable than the 30-year-old Boeing 727s.
  • The order will add to Northwest's existing fleet, which consists of over 400 planes.
  • The airline will deploy the new Airbus aircraft to replace ageing planes in its fleet, not increasing passenger capacity.
  • Northwest Airlines has not become an exclusive supplier of Airbus planes, as it has also ordered Boeing 747-400 jumbo jets.
  • The order will upgrade approximately 8% of Northwest's fleet of more than 400 planes.

Statistics:

  • Northwest Airlines will acquire 30 Airbus planes valued at $1.2 billion.
  • The new planes will replace 38 Boeing 727s built in the late 1960s and early 1970s.
  • The Airbus A-319 seats 124 passengers and has a range of 3,500 nautical miles.
  • The Airbus A-320 typically holds 150 first- and economy-class passengers and has a range of 3,000 nautical miles.
  • Northwest Airlines will deploy the new Airbus aircraft to replace ageing planes in its fleet.
  • The order will add to the airline's existing fleet, which consists of over 400 planes.

Sources:

  • Bloomberg News
  • Northwest Airlines Corp. (press release)
  • Northwest's aircraft fleet By the end of 1999 (Source: Northwest Airlines)