Startup Airline Orders 35, Options 60 More

One of America's newest airlines has gone decidedly European. Low-cost carrier Spirit Airlines Friday confirmed it's ordering 35 aircraft from Airbus, with an option on another 60. The aircraft will bolster the fleet, replacing the current lineup of 32 MD-80s.

"This will allow us to accelerate our significant growth plans and more than double our size," said Spirit Chairman Jacob Schorr. The initial purchase of 35 aircraft from Airbus is valued at approximately $2 billion.

The move comes as Airbus and its chief rival, Chicago-based Boeing, are locked in a pitched battle for market share. And in this case, Boeing wasn't even in the running.

"We did not have any proposal with them," said Boeing spokeswoman Sandy Angers "It was decided early on not to pursue the business." Boeing cited "strategic reasons" for not going after a deal with Spirit. Angers didn't elaborate on that rational.

The South Florida Sun-Sentinel reports 29 of the new aircraft will be A319s (file photo of type, above). The balance of the initial order will be larger A321s (file photo of type, below). They'll be delivered between 2005 and 2008, according to a statement from the airline. In the meantime, Spirit says it will lease several A321s.

Airbus says the orders haven't actually been placed yet. But that didn't stop the celebrations on both sides of the Atlantic. "This announcement shows how Airbus is winning share in the low-cost airline market," said an Airbus spokeswoman.

The new aircraft come in the wake of a deal between Spirit and Los Angeles-based Oaktree Management. Under terms of the agreement, Oaktree invested $125 million in Spirit, getting a majority interest in return. That deal allowed the company to go forward with leasing 20 aircraft from International Lease Financing Corporation.

Schorr says the Airbus deal marks "the second phase of a three-point growth program." The third phase, he said, will be marked by a major schedule expansion before the peak season next Christmas.

FMI: www.spiritair.com, www.airbus.com