Braniff Airways, Incorporated, successor Braniff, Inc., announced on January 5, 1989, that the Orlando, Florida-based carrier had purchased up to 100 Airbus A320-231 Twinjet airliners from Airbus Corporation. The orders were initially placed by Pan American World Airways, but continuing financial problems, exacerbated by the 1988 bombing of a Pan Am Boeing 747 over Lockerbie, Scotland, forced the airline to give up the orders.
Pan Am was scheduled to begin receiving the new jets beginning in July 1989, and continue until 1995. Braniff, Inc., agreed to pay Pan Am $115 million USD for the rights to take up the orders, which enabled Braniff to modernize its fleet faster than having to wait on long order lines at the factory.
Braniff had also ordered 12 Fokker F-100 Twinjet airliners, which combined with the new Airbus aircraft would allow the carrier to accelerate the retirement of its highly inefficient fleet of 18 BAC One-11 Twinjets. A number of the BAC One-11 jets were previously flown by Braniff International during the 1960s and early 1970's. Braniff did not take delivery of any of the Fokker Twinjets.
Braniff initially agreed to take up 50 of Pan Am's Airbus A320 jet orders. An option for the purchase of an additional 50 could also be executed at Braniff's discretion in a deal valued at $3.5 billion USD. At the news conference where the deal was announced, Braniff President William G. McGee, hired from Piedmont Airlines, noted that, "With the 12 Fokker 100 and the new Airbus jets, Braniff will operate a modern, highly efficient and quiet fleet.”
McGee noted that Braniff currently operated a fleet of 53 jet airliners that included Boeing 727-200, Boeing 737, and BAC One-11 aircraft. The new Airbus order allowed Braniff to effectively compete with the larger carriers who operate on many of the its routes. At the time of the news conference, Braniff operated two major connecting hubs at Kansas City International Airport and Orlando International Airport with 84 daily departures at Kansas City and 34 at Orlando.
Financing for the first 42 of 50 Airbus A320's was provided by a consortium of experienced aircraft financiers. Spearheading the Braniff finance package was Airbus, International Aero Engines, and GPA (Guiness Peat) Group of Shannon, Ireland, which had aided Braniff with the Dutch Fokker order. All of the Airbus aircraft that were delivered to Braniff were leased from Guiness Peat.
In 1988, Braniff was purchased from Hyatt Corporation by BIA-COR Holdings of Philadelphia, an investment group headed by financier Jeffrey Chodorow. A new management team, headed by McGee, was hired from Piedmont Airlines, with a plan to mimic the successful growth strategy of the fabled northeast airline.
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