International

New Airbus lands first airline customer

FARNBOROUGH, England: Airbus clinched its first airline customer for a newly revamped model Tuesday, in a tentative deal with Malaysia’s AirAsia for 50 A330neo wide-body jets worth over $13 billion.

The deal was sealed with a peck on the cheek from the French boss of Europe’s largest planemaker for AirAsia founder Tony Fernandes, who told the Farnborough Airshow: “We’re Airbus’ largest plane customer and definitely the most-loved.”

The deal brings the tally of provisional orders for the upgraded and more fuel-efficient version of the A330 to more than 100 units after deals with three leasing companies.

The aircraft will be used by long-haul affiliate AirAsia X, which has long campaigned for fuel savings.

It is an aircraft that Airbus had not expected to make until recently, but the company’s gamble will put pressure on Boeing’s much newer 787 Dreamliner in an order race for aircraft with 250-300 seats, ideally suited to growing intra-Asian travel.

Boeing has attacked Airbus’ latest model as a rehash of tired metallic technology compared with its carbon-composite 787 Dreamliner, which also had new orders Tuesday.

But Airbus and a trio of leasing company buyers said the A330 still made sense for airlines that do not need the full range capability of the 787 or its own A350, even though the smallest member of the A350 family is now sure to be axed.

The arrival of AirAsia injected sparkle into an air show dominated on its second day by financiers, who splashed out over $25 billion on bread-and-butter medium-haul, narrowbody jets as well as dozens of larger models.

Those deals involved names that mean little to most travelers but which keep the wheels turning of a $100 billion annual market for jetliners that remain in hot demand in emerging markets, as the West limps out of recession.

Confirming a Reuters report, Japanese-owned SMBC Aviation Capital signed the biggest deal of the show so far by number of units with a $12 billion order for 115 Airbus A320-family jets.

Airline deals have been few and far between at the world’s largest showcase event, which coincides with growing concern about overcapacity and a string of airline profit warnings.

But leasing companies are putting their faith in steadily growing aviation traffic, especially in Asia.

“We do see this as growing our business over the next 10 years,” SMBC Chief Executive Peter Barrett told journalists.

The air show has, however, brought renewed evidence of a battle for market share between Airbus and Boeing over sales of narrowbody jets, the backbone of most medium-haul networks.

It comes hard on the heels of two closely watched domestic contests in the U.K., where Monarch Airlines handed Boeing a critical win by dropping current supplier Airbus, while British Airways owner IAG stuck with Airbus after another duel.

The defense side of the show remained in suspense over the arrival of America’s newest combat jet, the Lockheed Martin F-35.

The radar-evading jet missed its Farnborough debut Monday after being grounded due to an engine fire, but U.S. military officials have approved a limited flight clearance along with engine inspections, the Pentagon said Tuesday.

Pentagon spokesman Rear Admiral John Kirby said Washington still hoped the F-35 could fly at the show.

 
A version of this article appeared in the print edition of The Daily Star on July 16, 2014, on page 6.

Recommended





Advertisement

Comments

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)

comments powered by Disqus

Advertisement

FOLLOW THIS ARTICLE

Interested in knowing more about this story?

Click here