Latvian airline airBaltic has signed a firm purchase agreement for 30 CS300s aircraft with options for an additional 30 aircraft. This order adds to the existing order of 20 CS300s.
“As an early adopter of the C Series, we took a forward-looking decision on advanced technology to support our turnaround plan leading to sustainable profitability, and today we are benefiting from the most fuel-efficient small single-aircraft,” said Martin Gauss, Chief Executive Officer of airBaltic. “With demonstrated fuel savings of more than 22 percent the aircraft plays vital role in maintaining our operating cost at a low level. In 2017, we experienced outstanding growth and showed the world the unique capabilities and comfort of this innovative aircraft. We successfully executed our fleet modernization strategy, and are excited to further grow our fleet up to 80 CS300 aircraft while phasing out our other aircraft types in the next three years.”
airBaltic’s business strategy – Destination 2025 – aims to expand the airline’s operations with the acquisition of the larger fleet of all-CS300 aircraft.
The new business plan Destination 2025 relies on expansion of routes from all three Baltic countries – Latvia, Estonia and Lithuania, covering essentially the main European cities. The strategy also foresees that airBaltic will achieve a significant increase in passenger numbers and its revenue by 2025.
Deliveries of the new ordered aircraft are scheduled to commence in the fourth quarter of 2019. The airline is operating revenue service with eight CS300 aircraft, and is expected to take delivery of 12 more by 2019. Based on the list price of the CS300 aircraft, the firm order is valued at approximately US$ 2.9 billion.
“As the C Series aircraft program continues to gain market acceptance, this significant reorder from our CS300 launch operator is a strong testimony to the aircraft’s exceptional in-service performance, said Fred Cromer, President, Bombardier Commercial Aircraft. “Furthermore, we are proud that the CS300 has helped airBaltic maintain its position as one of the world’s most punctual airlines. The C Series aircraft is at the forefront in the small single-aisle market, and airBaltic played a key role in demonstrating its value. In the last 18 months, we have witnessed airBaltic’s growing leadership in the market, and we wish the airline further success with its expanded CS300 fleet.”
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) and Russia have indicated that, rather than cut, they could increase oil production by an extra million barrels per day. As the price of oil reaches close to $80 a barrel, the cartel is keen to ensure the levels don’t exceed $90 a barrel, which would encourage US shale oil producers to pump up production once more. The market is expecting production to increase with should damper price rises.
