Volaris to lease 16 more new aircraft, with early deliveries of A320neo and A321neo driving increased fleet efficiency and growth
MEXICO CITY, Feb. 10, 2014 /PRNewswire/ — Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (“Volaris”) (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, and the US, has signed a letter of intent with a leading aircraft lessor for 16 aircraft, comprised of ten new A320neo and six new A321neo, driving fleet growth while significantly enhancing efficiency. These NEO aircraft, powered Pratt Whitney’s PW1100G engines, will be delivered between 2016 and 2018, as summarized in the table below:
Operating leases 2016E 2017E 2018E Total ----- ----- ----- ----- A320neo 2 4 4 10 A321neo - 2 4 6 ------- --- --- --- --- Total operating leases 2 6 8 16
Volaris CEO Enrique Beltranena commented: “These 16 aircraft together with the existing orders underpin the Volaris growth strategy by having a young, efficient and uniform fleet. Early delivery of next generation, fuel efficient Airbus A320neo and A321neo will allow us to maximize the use of airport slots in key markets and continue to further reduce our operating costs.”
According to the aircraft manufacturer, Airbus S.A.S., the A321neo provides a reduction of approximately 18% in operating cost per seat versus the existing A320 with sharklets in Volaris’ high density configuration.
These aircraft are in addition to the 50 aircraft under Volaris’ existing order and operating lease arrangements that are scheduled for delivery between 2014 and 2020. The following table shows the development of Volaris’ fleet from 2014 to 2020 pursuant to current contracts and pro forma for these operating leases:
Fleet Plan (net of expiring leases) 2014E 2015E 2016E 2017E 2018E 2019E 2020E ----- ----- ----- ----- ----- ----- ----- A319 (2) (1) (5) (3) (7) (2) - A320 & A320neo 7 4 7 6 10 10 12 A321neo - - - 2 4 - - ------- --- --- --- --- --- --- --- Total fleet, pro forma 49 52 54 59 66 74 86
The transaction is subject to the conclusion of satisfactory final documentation and customary corporate approvals.
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Volaris (NYSE: VLRS and BMV: VOLAR), is an ultra-low-cost carrier, or ULCC, serving Mexico and the US. Volaris utilizes its ULCC business model and efficient operations to offer low base fares and to stimulate demand while aiming to provide high quality customer service. Since beginning operations in March 2006, Volaris has increased its routes from 5 to 104 and its fleet from 4 to 44 aircraft. Volaris offers more than 200 daily flight segments on routes that connect 33 cities in Mexico and 13 cities in the United States with the youngest aircraft fleet in Mexico. Volaris, proudly Mexican, is recognized as one of the leading new companies in the country. Among other awards it has received the ESR Award for Social Corporate Responsibility for three consecutive years.
Volaris targets passengers who are visiting friends and relatives, cost-conscious business people and leisure travelers in Mexico and to select destinations in the United States. Volaris’ unbundled pricing strategy allows it to provide low base fares and enables its passengers to select and pay for a range of optional products and services. Volaris’ mission is to offer its clients high quality customer service at an affordable price. For more information, please visit: www.volaris.com
The information included in this report has not been audited and it does not provide information on the company’s future performance. Volaris’ future performance depends on many factors and it cannot be inferred that any period’s performance or its comparison year over year will be an indicator of a similar performance in the future.