Airblue to buy seven new aircraft
*Saturday, November 17, 2007
Staff Report*
KARACHI: Pakistan’s private airlines Airblue will buy 14 new generations’ A-320 aircraft, having worth $910 million with 50 percent financial collaboration of International Finance Cooperation (IFC) by the next five years.
This was announced by Chief Operating Officer (COO) Shahid Khaqan Abbasi in a press conference at a local hotel on Friday. “This is the biggest business deal of any private airline in the history of Pakistan’s aviation industry, he claimed. Abbasi said that Airblue had inked this contract with Airbus in the Dubai Air Show festival held recently and adding that this aircrafts purchasing will be borne by Airblue without any government financial support.
Aircraft’s manufacturer Airbus will deliver these aircrafts from July 2009 to December 2012 with the gap of three months during the mentioned period. Airbus will receive $65 million for each A-320 aircraft, COO Airblue explained.
“This investment will bring a handsome growth in the national aviation industry, expanding worldwide flight operations by capturing regional and international market,” he remarked.
Airblue would also charter six new generation’s aircraft in the upcoming 24-month meeting its flight expansion programme for the next five years. “These fuel-efficient aircraft will be inducted on lease for three to seven years and utilize them on the new routes of domestic and international flights,” he added.
“Airblue has decided to multiple its flight operation up to 4-6 daily to European and Gulf countries, particularly Manchester and Dubai,” he said, adding it will initiate its domestic flights from Multan to Sialkot next year.
Abbasi observed that Airblue had outperformed the sector since its establishment and enhanced its profits sharply. “Airblue gripped outstanding part of the aviation market and I hope it will post $250 to $400 million revenue during this financial year,” he commented.
The board of directors of the airline is envisaging introducing its IPOs in the country’s stock markets as the work is being done on this project, and it will be announced withi0n six or eight months, he added.
Regarding the rising prices of air fuel, he said the private airline could pass on its impact to the consumers to some extend because the fare is dictated by demand and supply principles of market.