Fresh demand: A file photo of an Airbus airliner at an at airshow. The company may see a surge of new orders at the ongoing Farnborough Air Show in Britain. — Reuters
PARIS: At this year’s Farnborough Air Show, Airbus SE is chasing orders for its A330neo airliner, positioning the widebody model as an attractive alternative to more advanced jets because of its favourable economics and availability.
Among the possible buyers of the jet, a more advanced version of an aircraft that first entered service in the mid 1990s, are Saudi Arabia’s Flynas and Flyadeal, as well as Vietnam’s Vietjet Aviation JSC, according to people familiar with the discussions.
Carriers studying orders are either still negotiating possible contracts or have completed agreements that they plan to announce at the expo kicking off today, said the people, who asked not to be identified discussing private deliberations.
A large order haul would shore up the backlog for the A330neo, which has more fuel-efficient engines and a redesigned wing.
Airbus has been particularly successful over the past year with the more advanced A350 airliner, its other widebody aircraft, though slots are scarce for any new buyers.
Boeing Co is also working to build momentum for its 777X model, whose sales have flagged amid certification delays that have pushed the jet’s market entry back by at least five years from its original date.
Korean Air Lines Co said in June that it’s in the market for as many as 30 new jets from the US planemaker and is evaluating the smaller 787 Dreamliner model.
The airline also said at the time that it’s planning to order new freighters and is looking at Boeing’s 777X for that.
With the A321neo sold out until well into the next decade, and both Airbus and Boeing struggling to ramp up production, conversations with airline customers have circled around supply chains and delayed airplanes.
Still, the annual trade show that alternates between Farnborough and Paris is still expected to produce hundreds of commercial jet orders in a mix of new deals, commitments and already booked orders.
Airbus and Boeing declined to comment on prospective sales at the show.
“Widebody sales are likely the centre of action at Farnborough this year,” said George Ferguson, an analyst with Bloomberg Intelligence. Salespeople for the twin-aisle models will get a “workout” at the airshow, he predicted in a July 15 report.
One deal that stands to be among the biggest in coming weeks is still being negotiated and may not land in time for the air show: Qatar Airways is exploring a major purchase of as many as 200 widebody jets, to be split between Boeing’s 777X and 787 models, and the Airbus A350, which Bloomberg News first reported in March.
Talks continue and no agreement may be announced in time for the show, some of the people said. Qatar Airways had no comment.
Flyadeal, the low-cost unit of Saudi Arabia’s flag carrier Saudia, is close to an order for 10 to 20 A330neos, some of the people said.
Flynas, another Saudi discounter, is also mulling a 15-plane order for the model, the people said. An official for Flyadeal said the airline is evaluating widebody options and that it has not made any decisions. Flynas declined to comment.
Vietjet, which announced a preliminary order for 20 A330s in February, will likely firm up that purchase at the air show, some of the people said.
The Vietnamese budget airline signed a memorandum of understanding for the widebody jets with Airbus at the Singapore airshow early in the year.
While the focus of the expo near London may be on widebody jets, single-aisle models will still play a large role.
Among major accords that may be formally signed is Cebu Air’s deal for as many as 152 of Airbus’s A321neo jets, a transaction valued at US$24bil based on price. The companies already reached a preliminary accord at the start of July.
But with order backlogs for the Boeing and Airbus workhorse models stretching out into the early 2030s, airlines have less of an incentive to lock in deals far into the future that could carry hefty price increases due to inflation and annual escalation clauses. — Bloomberg
