JetBlue to buy 48 planes
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June 18, 2001: 8:39 a.m. ET
Low-cost airline JetBlue to buy up to 48 Airbus planes for $2.5 billion
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LONDON (CNN) - JetBlue Airways, a U.S. low-fare carrier, said on Monday it has ordered up to 48 Airbus Industrie aircraft worth $2.5 billion.
The New-York based company said it was making a firm commitment to buy 30 Airbus A320 planes and was taking options for five aircraft and purchase rights for an additional 13.
"The Airbus A320 has been integral to JetBlue's ... popularity," said David Neeleman, Chief Executive of JetBlue. "Everybody benefits from the superior fuel efficiency which helps us keep costs down and our fares low."
Airbus has been locked in a battle with Boeing (BA: Research, Estimates), the world's biggest maker of commercial jets, for dominance of the skies. Airbus toppled Boeing from its perch as the builder of the world's biggest passenger jet with its plans to build a 555-seat double-deck A380 aircraft.
But Boeing is hitting back with a sub-sonic cruiser, which it is touting around the Paris Air Show this week.
Since launching operations 16 months ago, JetBlue has served some 2.5 million passengers with a fleet currently comprising 14 Airbus A320 aircraft.
Founded in 1999 by airline veteran Neeleman with an initial funding of $130 million, JetBlue lists billionaire financier George Soros and Chase Manhattan among its investors.
Based at New York's John F. Kennedy International Airport, the carrier offers one-class service with leather seats and live satellite TV. JetBlue plans to establish a second hub at Long Beach Airport outside Los Angeles.
JetBlue placed an original order for up to 75 aircraft and made arrangements to lease an additional seven in April, 1999. This new order brings JetBlue's fleet order to a total of up to 131 A320 aircraft, with a combined value of $6.5 billion.
"The speed at which JetBlue has found success is truly unprecedented in the low-fare market, and the fact that they did it with a fleet of all-new Airbus aircraft demonstrates that the right equipment can be a driving force," said Noel Forgeard, Chief Executive of Toulouse, France-based Airbus.
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