Mexico's Viva Aerobus Inks MoU To buy 90 Airbus A321neo Planes Powered By Pratt & Whitney GTF Engines

Airbus SE EADSY EADSF has signed a memorandum of understanding with Mexican airline Viva Aerobus for 90 A321neo aircraft. The financial terms were not disclosed.

"The Mexican leisure market is in full recovery mode and Viva Aerobus is at the centre of the action!" said Chief Commercial Officer and Head of Airbus International, Christian Scherer. "The unbeatable economics of the A321neo make it the perfect choice for the airline's ultra-low cost model," he added.

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The initial pact is the third order Viva has completed with the European manufacturer, thus maintaining a single fleet of A320 family aircraft. 

By incorporating new generation engines and Sharklets, the A321neo brings a 50% noise reduction and more than 20% fuel savings while maximizing passenger comfort with the widest single-aisle cabin and sizeable overhead stowage space.

Based on 2018 listing prices, the deal would be worth some $11.7 billion before typical industry discounts. Reuters notes.

The planes will have Raytheon Technologies Corporation RTX Pratt & Whitney GTF engines, which use a geared fan technology delivering the highest fuel efficiency with the lowest greenhouse gas emissions. The order is expected to be delivered by 2027. 

Price Action: EADSY shares closed lower by 0.58% to $36.01 on Wednesday.