David Neeleman, one of the founders of WestJet Airlines Ltd. and JetBlue Airways Corp., has committed to buy 60 Airbus A220-300 aircraft for a new U.S. airline he’s launching.
A memorandum of understanding for the aircraft which was developed by Bombardier Inc. was announced at the Farnborough Air Show.
The deal is worth $5.4 billion US at list prices, but airlines typically receive large discounts.
Deliveries of the former C Series jets are slated to begin in 2021, a year after the planes are expected to start coming off a new assembly line in Mobile, Ala.
The new airline is backed by a group of investors led by Neeleman, who is also an investor in TAP in Portugal and controlling shareholder in Azul airlines in Brazil.
The commitment is the second since Airbus took control of the aircraft program. Last week, JetBlue ordered 60 of the same aircraft for delivery starting in 2020 with the option for another 60 starting in 2025.