Airbus May Beat Boeing on $4.8 Billion AirAsia Sale
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Airbus May Beat Boeing on $4.8 Billion AirAsia Sale
Bloomberg
Airbus May Beat Boeing on $4.8 Billion AirAsia Sale
Nov. 8 (Bloomberg) -- Airbus SAS, the world's largest planemaker, may beat Boeing Co. for an order from AirAsia Sdn., Southeast Asia's largest discount carrier, for as many 80 aircraft worth $4.8 billion, said people familiar with the negotiations.
AirAsia, based in Malaysia, may buy 40 Airbus A320 single- aisle planes and take options for another 40 aircraft, the people said.
The airline currently operates a fleet of 24 Boeing 737s, with 12 more on order, so a win by Toulouse, France-based Airbus would mean a change in its fleet.
Airbus has won orders for 217 planes compared with 192 for Chicago-based Boeing so far this year, according to figures on their Web sites. The European planemaker, which delivered more aircraft than Boeing for the first time in 2003, got a 70-plane order last week from Air Berlin GmbH, another low-fare carrier, which is not yet included in the tally, pending contract signing.
"The combination of better operating economics, customer preference and aggressive pricing seems to be a winning formula for Airbus,'' said Keith McMullan, managing director of London-based consultancy Aviation Economics Ltd.
Earlier today, the Wall Street Journal reported that the airline is likely to buy the new planes from Airbus because the Europeans are offering a lower price than Boeing. The list price of the planes is about $60 million each, though airlines typically get discounts.
AirAsia's board of directors hasn't yet made a final decision on the purchase, the people familiar said. Airbus spokeswoman Barbara Kracht declined to comment. AirAsia Communications Director Joyce Lai couldn't be reached for comment. Boeing spokesman Todd Blecher declined to comment.
Asian Destinations
The airline, formed three years ago, flies to destinations such as Indonesia's Jakarta and Bali and Thailand's Bangkok and Phuket, as well as on Malaysian routes. The carrier wants to expand its fleet and add regional hubs in Indonesia and China. Last month it raised 863 million ringgit ($227 million) in a share sale, less that its 1 billion ringgit target.
The airline will begin flying to China in December after becoming the first budget carrier to get approval for routes in the world's most populous country. AirAsia also plans to start an Indonesian low-cost carrier based in Jakarta, which may start as early as December, providing regulatory approvals are obtained.
The airline has said it's looking for more fuel-efficient aircraft. The carrier said on Oct. 20 in its share-sale prospectus that fuel will increase to about 43 percent of its operating expenses in the fiscal year ending June 2005 from about a third during its first three years of operation.
Air Berlin Order
Airbus beat Boeing on Nov. 4 for the order worth as much as $6.6 billion from Air Berlin, Europe's third-largest low-cost airline, and Niki, former Formula 1 racer Niki Lauda's discount carrier. Air Berlin has until now flown Boeing planes. The 70-plane order has options for 40 additional aircraft.
John Leahy, chief commercial officer at Airbus, said after the Air Berlin win that about 80 percent of all new orders placed by low-cost operators in the last two years have gone to Airbus.
"As recently as five years ago, Boeing's 737 was the standard aircraft for low-cost operators,'' Leahy said in an interview. "Today the A320 is the standard.''
Boeing planes still represent about 90 percent of the current fleet of low-cost carriers and three-quarters of the unfilled orders, Randy Baseler, the company's vice president of marketing, said in a Nov. 4 interview. Baseler said Boeing lost the Air Berlin contract because it wouldn't beat Airbus's low bid.
"At some point in time, we'll say we're not going there,'' Baseler said.
To contact the reporter on this story:
Andrea Rothman in Paris on
or [email protected].
===========================================
Airbus May Beat Boeing on $4.8 Billion AirAsia Sale
Nov. 8 (Bloomberg) -- Airbus SAS, the world's largest planemaker, may beat Boeing Co. for an order from AirAsia Sdn., Southeast Asia's largest discount carrier, for as many 80 aircraft worth $4.8 billion, said people familiar with the negotiations.
AirAsia, based in Malaysia, may buy 40 Airbus A320 single- aisle planes and take options for another 40 aircraft, the people said.
The airline currently operates a fleet of 24 Boeing 737s, with 12 more on order, so a win by Toulouse, France-based Airbus would mean a change in its fleet.
Airbus has won orders for 217 planes compared with 192 for Chicago-based Boeing so far this year, according to figures on their Web sites. The European planemaker, which delivered more aircraft than Boeing for the first time in 2003, got a 70-plane order last week from Air Berlin GmbH, another low-fare carrier, which is not yet included in the tally, pending contract signing.
"The combination of better operating economics, customer preference and aggressive pricing seems to be a winning formula for Airbus,'' said Keith McMullan, managing director of London-based consultancy Aviation Economics Ltd.
Earlier today, the Wall Street Journal reported that the airline is likely to buy the new planes from Airbus because the Europeans are offering a lower price than Boeing. The list price of the planes is about $60 million each, though airlines typically get discounts.
AirAsia's board of directors hasn't yet made a final decision on the purchase, the people familiar said. Airbus spokeswoman Barbara Kracht declined to comment. AirAsia Communications Director Joyce Lai couldn't be reached for comment. Boeing spokesman Todd Blecher declined to comment.
Asian Destinations
The airline, formed three years ago, flies to destinations such as Indonesia's Jakarta and Bali and Thailand's Bangkok and Phuket, as well as on Malaysian routes. The carrier wants to expand its fleet and add regional hubs in Indonesia and China. Last month it raised 863 million ringgit ($227 million) in a share sale, less that its 1 billion ringgit target.
The airline will begin flying to China in December after becoming the first budget carrier to get approval for routes in the world's most populous country. AirAsia also plans to start an Indonesian low-cost carrier based in Jakarta, which may start as early as December, providing regulatory approvals are obtained.
The airline has said it's looking for more fuel-efficient aircraft. The carrier said on Oct. 20 in its share-sale prospectus that fuel will increase to about 43 percent of its operating expenses in the fiscal year ending June 2005 from about a third during its first three years of operation.
Air Berlin Order
Airbus beat Boeing on Nov. 4 for the order worth as much as $6.6 billion from Air Berlin, Europe's third-largest low-cost airline, and Niki, former Formula 1 racer Niki Lauda's discount carrier. Air Berlin has until now flown Boeing planes. The 70-plane order has options for 40 additional aircraft.
John Leahy, chief commercial officer at Airbus, said after the Air Berlin win that about 80 percent of all new orders placed by low-cost operators in the last two years have gone to Airbus.
"As recently as five years ago, Boeing's 737 was the standard aircraft for low-cost operators,'' Leahy said in an interview. "Today the A320 is the standard.''
Boeing planes still represent about 90 percent of the current fleet of low-cost carriers and three-quarters of the unfilled orders, Randy Baseler, the company's vice president of marketing, said in a Nov. 4 interview. Baseler said Boeing lost the Air Berlin contract because it wouldn't beat Airbus's low bid.
"At some point in time, we'll say we're not going there,'' Baseler said.
To contact the reporter on this story:
Andrea Rothman in Paris on
or [email protected].
===========================================
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This is now confirmed, although the breakdown of numbers is not yet confirmed (I would presume 320s, with perhaps a few 319s).
This is the latest in a considerable list of low cost (and "standard" carriers, if you include Cebu Pacific) carriers which have chosen Airbuses, making Virgin Blue the only Pacific region carrier to have gone with 737NGs (not that they're complaining!).
It's also strongly expected that Malaysia Airlines will select the A32X as its 737 replacement. It has a requirement for 39.
This is the latest in a considerable list of low cost (and "standard" carriers, if you include Cebu Pacific) carriers which have chosen Airbuses, making Virgin Blue the only Pacific region carrier to have gone with 737NGs (not that they're complaining!).
It's also strongly expected that Malaysia Airlines will select the A32X as its 737 replacement. It has a requirement for 39.
akerosid,
Been hearing of this order for a while, have not seen anything offical in the Airbus or Air Asia press releases.
I thought the order might have been delayed until the IPO, would like to know where you have seen the order confirmed.
If confirmed thats close to 200 A320 series airframes ordered in the week, putting upward pressure on lease costs for other low cost operators.
Been hearing of this order for a while, have not seen anything offical in the Airbus or Air Asia press releases.
I thought the order might have been delayed until the IPO, would like to know where you have seen the order confirmed.
If confirmed thats close to 200 A320 series airframes ordered in the week, putting upward pressure on lease costs for other low cost operators.
