The parties have entered into a purchase agreement for the purchase of 30 CS300 aircraft and retain the option to order another 30 aircraft of the same type.
The total amount of the contract in monetary terms was not disclosed, but Martin Gauss, President of airBaltic, said that from a list of prices in the CS300 catalog, the total value of the aircraft could be up to USD 5.5 billion or EUR 4.7 billion. . It is planned to invest airBaltic funds in the purchase of aircraft, as well as to attract a loan. However, how exactly to finance the renewal of the fleet will be decided while working on the purchase of specific aircraft.
Deliveries of the new aircraft are scheduled to begin in the fourth quarter of 2019.
Gauss noted that this order will complement the existing order of 20 CS300 aircraft and will form the basis of airBaltic’s new business plan “Destination 2025”, continuing the current airline business plan “Horizon 2021”.
“As the world’s first airline to launch CS300 aircraft, we made a forward-looking decision in favor of the latest technology that ensures the company’s sustainable profitability. As the CS300 saves more than 22% of fuel, it allows us to keep operating costs low. In 2017, we saw outstanding growth and proven to the world the unique capabilities and conveniences of this innovative aircraft, and we have successfully embarked on a fleet modernization and are pleased to increase the fleet to 80 CS300 aircraft, which will replace other aircraft in the coming years. , “stressed Gauss.
He noted that the business strategy “Destination 2025” envisages that airBaltic will expand the company’s operations. A key component of the new business plan is the creation of a larger and more exclusive fleet, consisting only of CS300 aircraft, which are best suited to the airBaltic market.
The new business plan “Destination 2025” is based on the expansion of routes from all three Baltic States – Latvia, Estonia and Lithuania – providing regular connections to major European cities. The strategy envisages that airBaltic will achieve a significant increase in passenger numbers and revenues by 2025, Gauss said, adding that with this new aircraft order, airBaltic will have all the prerequisites to be able to secure a stable future.
On Monday, Minister of Transport Uldis Augulis (ZZS) admitted to journalists that 2017 was the most successful year in the history of airBaltic, achieving very high operational and financial results. This serves as proof of the right choice of airline strategy and operating model.