News

Airbus to boost A320 production to 60 a month in mid-2019

Ongoing high demand for world’s leading Single Aisle aircraft

To match ongoing high demand for its bestselling A320 Family, Airbus has taken the decision to further increase the production rate of the Single Aisle Family to 60 aircraft a month in mid-2019. The decision follows thorough studies on production ramp-up readiness in the supply chain and in Airbus sites to allow the ramp-up.

To enable the ramp-up Airbus will extend its capacity in Hamburg with the creation of an additional production line. In parallel Airbus will integrate cabin furnishing activities for A320 aircraft produced in Toulouse into the Final Assembly Line in Toulouse, and thereby harmonising the production process across all A320 Family Final Assembly Lines worldwide.

“The growing Single Aisle demand and impressive backlog for both CEOs and NEOs led us to decide on a further ramp-up,” said Didier Evrard, Executive Vice President Programmes. “I am confident that we have the highest skilled teams and the right solutions in place to gradually move to the highest production rate ever achieved in civil aviation history.”

The A320 Family is the world’s best-selling single aisle product line with over 12,200 orders since launch and more than 6,700 aircraft delivered to more than 300 operators worldwide. Thanks to their widest cabin, all members of the A320 Family offer unmatched comfort in all classes and Airbus’ 18” wide seats in economy as standard. With one aircraft in four sizes (A318, A319, A320 & A321), the A320 Family, seating from 100 to 240 passengers, seamlessly covers the entire single-aisle segment from low to high-density domestic to longer range routes.

The A320neo Family incorporates latest technologies including new generation engines and Sharklet wing tip devices, which together deliver more than 15 percent in fuel savings from day one and 20 percent by 2020 with further cabin innovations. With over 4,300 orders received from more than 75 customers since its launch in 2010, the A320neo Family has captured almost 60 percent share of the market.

Airlines

Alaska Airlines Acquisition of Hawaiian Airlines Reshapes the Air Travel Landscape

Alaska Air Group, Inc. (NYSE: ALK) and Hawaiian Holdings, Inc. (NASDAQ: HA) jointly announced today the execution of a definitive agreement, signifying Alaska Airlines’ acquisition of Hawaiian Airlines at a cash price of $18.00 per share. The total transaction value stands at approximately $1.9 billion, encompassing Hawaiian Airlines’ net debt of $0.9 billion.

The combination of complementary domestic, international, and cargo networks

This strategic union is poised to open up an array of additional destinations, providing consumers with increased choices in crucial air service options across the Pacific region, Continental United States, and globally.

The transaction is anticipated to establish a robust platform for growth and competition in the U.S., offering enduring employment opportunities, ongoing community investments, and a commitment to environmental stewardship.

Key Points:

Acquisition Overview:
- Alaska Air Group to acquire Hawaiian Holdings for $18.00 per share in an all-cash transaction, totaling approximately $1.9 billion.
- Combined company aims to maintain the strong, high-quality brands of Alaska Airlines and Hawaiian Airlines.
Fleet Expansion and Network Reach:
- Creates the fifth-largest U.S. airline with a fleet of 365 narrow and wide-body airplanes.
- Enables access to 138 destinations through combined networks and over 1,200 destinations via the oneworld Alliance.
Hub Development and Connectivity:
- Honolulu to become a key hub for the combined airline, offering expanded services to the Continental U.S., Asia, and the Pacific.
- Tripling the number of destinations from Hawai‘i to North America, while maintaining robust Neighbor Island service.
Commitment to Hawai‘i:
- Strong commitment to Hawai‘i, ensuring robust Neighbor Island air service.
- Aiming for a more competitive platform supporting growth, job opportunities, community investment, and environmental stewardship.
Employee and Union Commitment:
- Commitment to maintaining and growing the union-represented workforce in Hawai‘i.
- Immediate value creation with at least $235 million of expected run-rate synergies.
Investor Call and Timeline:
- Investor conference call scheduled for today at 5:00 p.m. ET / 2:00 p.m. PT / 12:00 p.m. HT.
- Anticipated closing of the transaction within 12-18 months.
Strategic and Financial Rationale:
- Complementary networks to enhance competition and provide greater choice for consumers.
- Preservation of both Alaska and Hawaiian Airlines’ brands on a single operating platform.
- Expected to deliver high single-digit earnings accretion for Alaska Airlines within the first two years.
Community and Sustainability Commitment:
- Focus on growth in union-represented jobs and strong operational presence in Hawai‘i.
- Commitment to environmental stewardship, aligning with Alaska Airlines’ five-part path to net zero by 2040.
Synergies and Accretion:
- Expected run-rate synergies of at least $235 million.
- Transaction multiple of 0.7 times revenue, approximately one third the average of recent airline transactions.
Conditions to Close:

Approval by regulatory authorities and Hawaiian Holdings, Inc. shareholders.
Expected to close in 12-18 months, with the combined organization based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.