Airbus wins US$1.4b order for 13 planes from Japan's Peach

[TOKYO] Airbus Group SE won an order for 13 Airbus planes valued at about US$1.4 billion at list prices from Japanese budget carrier Peach Aviation Ltd, making inroads in a nation where most aircraft flown come from Boeing Co.

Peach signed an agreement to buy 10 A320neo aircraft and three A320ceo planes, it said in a statement on Friday. The carrier plans to expand its fleet to at least 35 planes by 2020 and to 100 later, Chief Executive Officer Shinichi Inoue said Friday at a briefing in Tokyo that was also attended by Airbus Group Chief Operating Officer Fabrice Bregier.

The order for A320neos, with the first scheduled to be handed over in 2019, is a bright spot for a plane model whose deliveries have been plagued by engine issues. Peach, backed by ANA Holdings Inc, started operations four years ago and is buying more planes as demand for low-cost travel in Japan spurs growth.

The carrier plans to set up a base at Sendai airport next year and at Sapporo's Shin-Chitose airport in 2018, Inoue said.

Peach operates 18 Airbus A320s and competes against Jetstar Japan Co, the budget carrier backed by Qantas Airways Ltd and Japan Airlines Co., and other low-cost airlines.

The A320neo has a list price of US$107.3 million, while the A320ceo is priced at US$98 million. Discounts are common in the industry.

Airbus won its first order from Japan Airlines three years ago. ANA, which already operates the single-aisle A320, ordered widebody A380s earlier this year.

ANA is Peach's largest shareholder with 39 per cent, followed by First Eastern Aviation Holdings Ltd with 33 per cent, and Innovation Network Corp of Japan with 28 per cent.

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