Aerospace leader Airbus has initiated the second stage of its multi-tranche share buyback scheme, a strategic move designed to underpin its future employee share ownership and equity-based compensation plans. This development follows the company's recent commercial triumph at the Dubai Airshow, where it secured a significant new order.
Details of the Share Buyback Programme
The buyback programme, which was initially announced in September and received shareholder approval in April, involves repurchasing up to a maximum of 4,140,000 shares. The scheme is being executed in phases and is scheduled to conclude on January 16.
The first tranche was successfully completed at the end of last month, resulting in the buyback of 2,070,000 shares. For this second phase, Airbus has enlisted an independent investment firm to manage the trading and timing of the share purchases, ensuring the process is handled separately from the company's direct influence.
Dubai Airshow Boosts Momentum
The announcement of the buyback's second stage comes hot on the heels of a major commercial victory for Airbus. Just two days prior, at the Dubai Airshow, the company signed a Memorandum of Understanding (MoU) with flydubai for 150 A321neo aircraft.
This agreement marks a pivotal moment as flydubai becomes a new customer for the aerospace giant. The deal was formalised by Sheikh Ahmed bin Saeed Al Maktoum, chairman of flydubai, and Christian Scherer, Chief Executive of Commercial Aircraft at Airbus.
Christian Scherer welcomed the new partnership, stating: "We welcome flydubai, one of the Middle East’s most ambitious and fast-growing carriers, as a new Airbus customer. The decision to invest in and introduce the A321neo into its fleet is another endorsement of the added value Airbus brings in terms of range, efficiency and passenger comfort."
Strategic Implications and Future Growth
This large order for the A321neo model, of which over 7,200 have been ordered globally by nearly 100 customers, provides a strong backdrop for Airbus's financial decisions. The share buyback programme directly supports its workforce strategy, reinforcing the link between company performance and employee reward.
Sheikh Ahmed highlighted the strategic importance for flydubai, noting that the aircraft will diversify its narrow-body fleet and play a key role in the expansion of Dubai World Central, an airport with ambitions to become the world's largest.
With major manufacturing sites in the UK, including Broughton in North Wales and Filton near Bristol, Airbus's financial health and market successes have a direct impact on the British aerospace sector and its skilled workforce.
