Air Arabia Leans on Aircraft Lessors Amid Airbus Delivery Delays

Air Arabia, based in Sharjah, UAE, is adapting its growth strategy in response to delays in Airbus deliveries, according to CEO Adel Abdullah Ali. Originally slated for the fourth quarter of 2024, the delivery of the first batch of 120 aircraft ordered directly from Airbus has been pushed back to the first half of 2025, as reported by Dubai’s Gulf News.

To sustain its fleet expansion plans, the airline has turned to leasing arrangements. Ali revealed, “To grow the business, we have leased airplanes. Last year, we got about ten. This year, we are getting about eight. So we should be just over 90 airplanes by the end of 2024, which is within our target. In 2025, we will start receiving 120 orders in phases over five years.”

Currently, Air Arabia operates a fleet comprising thirty-six A320-200s, three A321-200s, and six A321-200NX(LR)s. Additionally, its subsidiaries, including Air Arabia Abu Dhabi, Air Arabia Egypt, Air Arabia Maroc, and Fly Jinnah, contribute to a combined fleet of 75 aircraft.

The group has recently acquired four second-hand A320s in 2024, excluding intra-group transfers. These include two for the Sharjah-based AOC and two for Air Arabia Maroc. The newly leased units are owned by SMBC Aviation Capital, Aviation Capital Group, and BOC Aviation, with the carrier set to induct leased A320-200Ns later this year.

Air Arabia’s order book comprises seventy-three A320-200Ns, twenty-seven A321-200NXs, and twenty A321-200NY(XLR)s directly from Airbus. Despite the delay and supply chain challenges, Ali emphasized the airline’s commitment to integrating the new aircraft before considering further orders, citing geopolitical uncertainties.

Ali also stated that the airline has no immediate plans to expand into the widebody sector, highlighting the success of its narrowbody-only business model. With the extended range of the A321-200NY(XLR)s, Air Arabia aims to effectively serve its market without the need for widebody aircraft.