Malaysia’s low-priced airline AirAsia on Tuesday placed a blockbuster order for 100 single-aisle fuel-efficient A321neo jets worth a vast $12.5 billion in the biggest deal so far at the Farnborough airshow.
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Air Europa orders 20 737 MAX 8s, worth $2.2 billion at list prices, previously attributed to an unidentified customer on Boeing’s website.
The deal, valued at $864 million at list price, was already in the Chicago-based plane maker’s backlog as an undisclosed customer.
In addition, Air Lease Corporation ordered six 737MAX 8s, worth $660 million, while China’s Kunming Airlines signed an MOU for 10 737MAX 7s, worth $806 million.
Finalises deal for Russian heavy cargo carrier Volga-Dnepr to buy 20 747-8 freighters, worth $7.6 billion at list prices.
This exchange comes on the day that Airbus bagged a plum order from Tony Fernandes led Airasia for 100 A321 neos and as many as 72 A320 neos by GoAir. The trend is prompting low-priced operators that have already amassed large order backlogs to add even more planes.
However, the production cut does make sense, as according to the plane makers’ previous 20-year forecast, the company had estimated the need for 32, 600 planes out of which only 1,550 were for the larger aircraft, representing almost 4.8% of the demand for aircraft. “There’s particularly strong demand for intra-regional connectivity in Southeast Asia and North Asia, and then there’s very, very strong demand within China itself for domestic flights”.
On Monday, the first day of the Farnborough expo, Asian airlines were set to give the biggest boost to both Boeing and Airbus.
Boeing also revealed that Chinese peer Xiamen Airlines had also indicated its interest in 30 of its single-aisle twin engine 737 MAX 200 planes worth US$3.4 billion.
Airbus, which traditionally fights USA rival Boeing for blockbuster order announcements at Farnborough, southwest of London, revealed a US$4.4-billion firm order from Virgin Atlantic for 12 wide-bodied Airbus A350-1000 jets. Air Lease separately announced orders for three A350-900s and an A321, and Jetstar Pacific of Vietnam signed an outline accord for 10 current-generation A320s.
Airbus is to dramatically cut production of the A380 superjumbo, highlighting the lacklustre performance of the biggest passenger jet ever built.
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Airbus still has to deliver at least 41 of the new long-haul jets to reach a target of more than 50 for the whole year, after a slow start blamed partly on shortages of seats and lavatories.
