Arkia Airlines Ltd. yesterday signed a contract to buy four Airbus neo A321 airlines for $400 million. Under the contract, Airbus has undertaken to make reciprocal procurements in Israel.
Arkia ordered an Airbus A321 configuration with 220 seats. Delivery is scheduled for 2018. Arkia CEO Gadi Tepper said that the planes would greatly improve the effectiveness of the airline's fleet. The new planes will be used on Arkia's domestic and international routes.
The Airbus neo A321 will begin entering service with airlines in 2015. It is considered an energy-efficient plane which uses state-of-the-art engine technologies to cut fuel consumption by 15%, reducing air pollution and airlines' costs.
Arkia says that the planes also reduce noise. Residents around Tel Aviv's Sde Dov Airport have been fighting Arkia for years over the noise generated by its Embraer 195 aircraft.
Tepper added that the Airbus neo A321s will be part of Arkia's strategy to expand its European destinations. "The new planes will give passengers new standards of comfort, as we expand operations for the good of the airline's employees and owners," he said in a letter to employees. He added that Arkia and Airbus were jointing setting up a regional maintenance center for the Middle East at Ben Gurion Airport.
Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2012
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