JetBlue orders $4bn Airbus jets
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NEW YORK (CNN) -- JetBlue Airways, a U.S. discount airline, Thursday ordered 65 Airbus A320 passenger jets worth almost $4 billion.
JetBlue, which currently flies 46 Airbus planes, said it also has an option on another 50 new aircraft from the world's second-largest plane maker.
The order is the biggest this year for either Airbus and Boeing, its main U.S. rival.
It comes at a difficult time for the airline industry and aerospace manufacturers alike, as demand for air travel struggles to recover from war, terrorism, economic recession and the outbreak of SARS.
"With this order, JetBlue demonstrates that with the right people, the right product and the right cost structure, airlines can grow, even in this current, challenging environment," said Airbus chief executive Noel Forgeard.
The airline and aircraft maker did not disclose the terms of the deal. The A320 can seat 150 passengers.
But excluding the options, the value of the deal based on catalogue prices would be between $3.71 billion and $3.97 billion, depending on delivery time and engine choice. But aircraft manufacturers usually offer discounts to win order.
"This would be a significant order," Will Mackie, analyst at Commerzbank in London, told Reuters.
"The timing of the deliveries will be crucial. If JetBlue is taking on these aircraft during the low point of the market, in 2004 and 2005, then it would represent a key support for Airbus narrow-body production."
