All-737 operator signs $4.2 billion A320 order, including a batch for Austrian partner Niki

Airbus delivered another blow to Boeing's crumbling grip on the low cost carrier sector last week, winning the long awaited order from all-737 operator Air Berlin for up to 110 aircraft, including options. The German airline has placed orders for 70 A320 family aircraft worth $4.2 billion at list prices, and take options on a further 40.

Deliveries will start in September next year and continue through to 2011. Ten of the firm orders will be allocated to Air Berlin's Austrian low-fare carrier partner Niki, in which it holds a 24% stake. Air Berlin operates 42 737s - five-400s and 37 -700/800s - while Niki flies five A320 family aircraft.

Vienna-based Niki was set up by Lauda Air founder Niki Lauda in October last year through the takeover of Aero Lloyd Austria after the collapse of its German parent. Lauda told Flight International last week at the launch of his thirteenth route, to London Stansted, that he was actively involved in the fleet-evaluation process: "Niki has an all-Airbus fleet inherited from its predecessor, so I've done the Airbus evaluation, and Air Berlin the Boeing." Lauda adds that Niki will double its A320 fleet over the next five years to ten aircraft. It is expected that its existing fleet will be rolled over for the newly ordered aircraft.

Air Berlin says that the initial plan is to operate a dual fleet, with the new Airbuses being used for growth: "Our first 737 leases do not expire until 2006. We want to stay flexible to see what the market does," says the airline.

Lauda says that Niki is "Austria's only low-fare airline" and is able to counter the fact that it operates from the relatively high cost Vienna airport by keeping its overheads and non-flying staff to a minimum - all ground services are bought in - and he uses Air Berlin's "sales and marketing power". Steady network growth is planned, with services to Paris and Milan next in the sights. In the longer term, Lauda envisages a network into eastern Europe, starting with services to Poland.

MAX KINGSLEY-JONES / LONDON

 

Source: Flight International