AirAsia to boost record Airbus deal to 300 planes
Baku, July 6 (AZERTAC). AirAsia will buy an extra 100 Airbus A320neo jets, taking its record-breaking order to 300 planes, a source said, a deal that would make the Malaysia-based low-cost airline one of the world`s largest carriers.
AirAsia and Airbus announced an USD$18.2 billion deal for 200 planes at the Paris Air Show last month, shattering aviation records for the largest ever airline order. The additional order takes the list price of the contract to a staggering USD$27 billion.
The bumper order highlights Airbus`s growing lead over Boeing and throws the spotlight on AirAsia`s aggressive growth plans at a time when high oil prices and an uncertain global economy are clouding the outlook for travel demand.
Analysts expect the extended order to drive AirAsia`s expansion as it competes with short-haul carriers such as India`s IndiGo, Singapore`s Tiger Airways and Australia`s Jetstar in the Asia-Pacific region, the fastest growing in the world.
"AirAsia`s last replacement order was in 2007/2008. These new orders are long overdue so it`s not an aggressive order," said Kunal Sinha, an aerospace expert with the Frost & Sullivan consultancy.
"AirAsia`s new fleet is to be used mostly to link Southeast Asia to India and China. By 2015, Southeast Asia will have open skies so you have to have a growth plan."
Boeing on Wednesday said it expected 33,500 new planes to be delivered by 2030, driven by growth in India and elsewhere in Asia.
AirAsia plans to list its operations in Thailand and Indonesia this year as it expands in those markets and is in talks to open a hub in Singapore, its chief executive Tony Fernandes has said.
Like the previous order, the additional 100 planes would also use CFM International engines, the source with direct knowledge of the deal said, declining to be identified because the deal is not public yet.
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