Aviation

AirAsia in discussion over another A321neo order.

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AirAsia discuss the potential to order a further 100 A321neo’s.

Malaysian entrepreneur Tony Fernandes & Airbus are in negotiations on a potential big A321neo order. AirAsia’s Fernades may attend Farnborough Airshow this week where Fernandes and Airbus will attempt to end the troubles in their relations and attempt agree all or part of a complex package of wide-body and narrow-body jetliner orders.

Firstly AirAsia is Malaysia’s largest airline by fleet number and destinations. Secondly AirAsia (excluding subsidaries) are an all Airbus fleet. The fleet includes 68 A320-200 & 21 A320 neo. Further more AirAsia have 249 A320 neo on order and 100 A321neo on order, none of which have been delivered.

Furthermore there is speculation AirAsia may order Airbus’ struggling A330 neo’s. It is unclear as the how much this deal will bring Airbus as the low-cost carrier is balancing existing orders and drives for a bargain on prices and the deposits. AirAsia including it’s subsidiaries has over 600 aircraft on order two thirds of which are still undelivered.

 

Can Airbus Keep up with orders and demand?

Airbus has missed a number of deadlines for deliveries. Meaning customers have been forced to find alternatives, delay new routes or cancel flights.  Missed deliveries mean delayed payments. Which since most money changes hands upon delivery. Therefore has hit Airbus cash flow hard.

Airbus A320neo Production Factory in Mobile, Alabama.
Photography Courtesy of AIN.

In comparison Boeing hasn’t missed any order deadlines and has vowed to continue it’s success. Although like Airbus, Boeing has been hit hard with supplier shortfalls.

The booming demand for aircraft has meant it’s becoming more challenging for supplier and aircraft manufacturers like Airbus & Boeing to keep up with demand.

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