Airbus seals record aircraft deal

23 June 2011 Last updated at 11:59 GMT Airbus chief executive Tom Enders said he was proud to be AirAsia's partner

Airbus piled up the orders at the Paris air show as it announced the largest single order of commercial aircraft in history.

Malaysia's low-cost carrier AirAsia is buying 200 of the A320neo jets, in a deal worth about $18bn (?11bn).

That eclipsed a deal on Wednesday, when India's IndiGo confirmed an order for 180 planes from Airbus.

The new versions of the A320 are in demand as their new engines make them more fuel-efficient and cheaper to run.

The AirAsia deal, worth about $15.6bn, is for 150 A320neos and 30 A320s. It is confirmation of a memorandum of understanding the two companies signed in January this year.

'Historic deal'

Airbus said that the AirAsia deal made the Malaysian carrier its biggest airline customer for its single-aisle product line.

Altogether, AirAsia has now placed firm orders for 375 aircraft from the A320 family, with 89 already in service.

"With this historic deal, AirAsia has secured its future with the ability to meet the huge growth potential offered by the Asian market," said Tony Fernandes, chief executive of AirAsia.

Airbus, owned by EADS, has left rival Boeing far behind in terms of orders at the event, as high fuel costs increase the demand for more fuel-efficient aircraft.

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Though slightly modified, the 150-seat passenger jet itself is not new. But its engines are - and they are much better than anything else currently on offer”

End Quote Jorn Madslien Business reporter, BBC News, Paris air show It has taken firm orders for 586 aircraft, worth about $55.8bn, with a further $29.5bn in provisional orders.

Boeing, meanwhile, has taken firm orders for just 47 planes, worth $7.5bn, with another $14.9bn placed in provisional orders.

Other manufacturers have also been signing contracts with airlines at the show.

Canada's Bombardier has received firm orders for 36 planes, with options for airlines to buy up to 26 more.

Russian-Italian joint venture Superjet International has signed a provisional deal to sell 12 Superjet 100 airliners to Italian carrier Blue Panorama Airlines for $370m.

The company, jointly-owned by Russia's Sukhoi and a unit of Italy's Finmeccanica, has 170 firm orders to date and delivered its first aircraft earlier this year.

Boeing's dilemma

Airbus estimates it has sold more than 700 A320neo jets so far.

Continue reading the main story Slightly modified version of the A320, with "sharklet" wing tipsSingle-aisle passenger jet, seats 15015% more fuel-efficient than the conventional A320, which should save airlines almost $1m (?625,000) per year per planeShould reduce CO2 emissions from each aircraft by 3,600 tonnes per year

Source: Airbus

"There is a possibility that we will be at 1,000 by the end of the show," said Airbus sales chief John Leahy.

According to the BBC's aerospace industry specialist, Jorn Madslien, the A320neos are proving popular because their two new engines are 15% more fuel efficient and 30% cheaper to maintain than current models.

But Airbus' success leaves Boeing with a very tough dilemma, our correspondent at the air show says.

The US planemaker's A320 rival is the 737, but the plane is very low, so fitting modern, fuel-efficient engines under its wings would be a tight squeeze.

Making it happen would require a new undercarriage, which is costly and difficult, as well as time-consuming, he says.

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Accidents blight Airbus in Paris

20 June 2011 Last updated at 12:35 GMT The wingtip of an Airbus A380 demonstration plane struck a building at Le Bourguet

Airbus' appearance at the Paris Air Show has been blighted by misfortune, with two key planes damaged.

The wing tip of its demonstration A380 superjumbo struck a building at Le Bourguet airport venue during taxiing.

Gearbox problems have stopped its A400M military transporter from performing a scheduled aerial display, although it will still take part in a fly-past.

It left Boeing able to steal the limelight on the first day of the show with its new, lengthened 747-8 jumbo.

The US rival said it had already received 17 orders for the enlarged plane from two as yet unnamed customers, one of them for 15 planes.

The firm also claimed the first confirmed deal of the show: an order for six 777 planes worth $1.7bn (?1.1bn) from Qatar Airways.

Eco-plane

Despite its bad luck at the opening, Airbus is expected to put in a strong showing at this year's show with a string of orders expected for its new low-emission A320neo plane.

The medium-haul 150-seater planes are a redesign of the traditional A320 that cuts emissions by 15%, reducing clients' carbon footprints and their fuel bills.

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Engines for 27 Airbus A350 XWBs

The European firm has now received orders and committments to buy 390 of the A320neos.

The first to arrive during the air show came from leasing firm GE Capital Aviation Services, which said it would buy 60 aircraft worth $5.1bn.

Airbus signed deals for 100 planes last week, with budget carriers Cebu of the Philippines and GoAir of India.

Orders have also come in from airlines Virgin American, IndiGo and Tam, as well as from the plane leasing firm ILFC

However, the $16bn 180-plane order from IndiGo, which is the biggest single order by far, is still stuck in negotiations.

Another 200 planes are expected to be ordered by Malaysia's AirAsia, with the related plane engine order said to be going to the French-American firm CFM.

And Scandinavian airline SAS is expected to follow suit, with plans to buy 30 A320neos worth $2.4bn, with engines from CFM.

Qatar Airways chief executive Akbar al-Baker said that he too expects to buy the Airbus planes, on top of the 777 order already placed with Boeing.

Upgrade delays

Boeing is considering whether to upgrade its 737 planes in response to the apparent popularity of the A320neo, or whether to develop a new plane altogether.

The US firm said it intended to take its time over the decision and would not be making an announcement at the air show.

Airbus announced on Saturday a two-year delay to its new stretched A350 jets.

The A350-1000 will not be delivered until 2017, as Airbus wants to give Rolls Royce more time to develop engines for the plane.

The standard A350-900 is still expected to be ready by late 2013.

Separately, Rolls Royce signed a $2.2bn contract with Brazil's Tam airline to deliver Trent XWB engines for 27 Airbus A350 aircraft, as well as a 12-year servicing contract.

Also in Brazil, manufacturer Embraer said it had signed deals to sell 39 of its Embraer 190 regional planes, worth $1.7bn.

This year's Paris Air Show is taking place at Le Bourget exhibition centre on the outskirts of Paris from 20 to 26 June 2011.

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