Dec 14, 2012

AirAsia’s long haggle over price ends with 100 new A320s

AirAsia wears down Airbus on price, stocks up with 100 more A320s

Ben Sandilands — Editor of Plane Talking

Ben Sandilands

Editor of Plane Talking

Airbus graphic of an AirAsia 320neo with CFM Leap engines

It would have been a shocker for Airbus had AirAsia gone for the rival Boeing 737 MAX, but the risk of such an upset happening has passed.

Going on past comments from AirAsia founder Tony Fernandes, it has taken seven months to finally get the price he wanted from Airbus for signing up overnight for 100 more A320s.


A second Airbus graphic of the order it probably couldn't afford to lose, or win!
A second Airbus graphic of the order it probably couldn't afford to lose, or win!

This is what the parties agreed to say about the deal, which is also interesting for what it says about the scope of AirAsia success in developing a pan Asia low cost single aisle airline franchise.

AirAsia, the largest low cost airline in Asia, has placed a new order with Airbus for 100 more A320 Family aircraft. The contract covers an additional 64 A320neo and 36 A320ceo aircraft for operation across the carrier’s network.

The order was announced during a visit by British Prime Minister David Cameron to the Airbus wing manufacturing facility at Broughton in the UK, where Mr Cameron witnessed the signing of documents by Tan Sri Tony Fernandes, Group Chief Executive Officer, AirAsia and Fabrice Brégier, President & CEO, Airbus.

The contract reaffirms AirAsia’s position as the largest A320 Family airline customer in the world. Altogether, the carrier has now ordered 475 single aisle aircraft from Airbus, comprising 264 A320neo and 211 A320ceo. Over 100 aircraft have already been delivered to the airline and are flying out of its bases in Bangkok, Kuala Lumpur, Jakarta, Manila and Tokyo.

Tan Sri Tony Fernandes, Group Chief Executive Officer of AirAsia said during the signing: “We have three gold mines in Malaysia, Thailand and Indonesia. On the other hand, Philippines and Japan have enormous potential growth. With these added aircraft, it goes in-line with our strategy to further build our already extensive network through new routes and added frequencies and allow AirAsia to maintain its market leadership.”

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