MAS and AirAsia may order 220 new aircraft at Paris Air Show 2011

[flee 5]

AirAsia Bhd, Southeast Asia’s biggest discount airline, is in talks to buy about 175 of Airbus SAS’s upgraded A320 jet as it adds short-haul flights within the region, Chief Executive Officer Tony Fernandes said.

 

“We like the product and we’d like to order lots more because there’s plenty of growth in our region,” Fernandes said in an interview today in Paris. “We haven’t agreed financial terms yet.”

 

The tentative order rewards Airbus, a unit of European Aeronautic Defence & Space Co, for its decision to offer a modified version of the A320 single-aisle jet with more efficient engines. The A320neo will be introduced in 2016, after postponing development of an all-new replacement model until as late as 2025, the aircraft maker said Dec. 1

 

Airbus expects to take “several hundred” orders for the upgraded A320 before June’s Paris Air Show, Chief Operating Officer John Leahy said Jan. 28.

 

Kuala Lumpur-based AirAsia has taken delivery of most of the 175 A320s it bought on a previous contract, and its order for the revamped version will be “not dissimilar” in size, Fernandes said today.

 

Shifting Planes

 

After building up a network of 139 routes among its 75 destinations, the Malaysian low-cost carrier is pulling planes off routes longer than 3 1/2 hours to take advantage of fast- growing demand for short-haul travel.

 

“If you take a plane to Hyderabad, it’s four hours there, four hours back and you lose that plane for the whole day,” Fernandes said. “If I take that route out I can do another three flights to Singapore and the return is much better.”

 

The CEO spoke before a news conference marking yesterday’s opening of services between Kuala Lumpur and Paris, the second European destination for long-haul unit AirAsia X after London.

 

The carrier plans to add three or four more European destinations, starting with Berlin or Cologne in the second half of this year, with Milan, Nice, Prague and Budapest under consideration for later, Fernandes said. AirAsia is in talks to buy more Airbus A330 jets to operate those routes, he added.

 

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110215225944/Article/index_html

[Robert 0]

I didnt think the A330 could travel that far non stop?

[Mohd Azizul Ramli 2]

The CEO spoke before a news conference marking yesterday’s opening of services between Kuala Lumpur and Paris, the second European destination for long-haul unit AirAsia X after London.

 

The carrier plans to add three or four more European destinations, starting with Berlin or Cologne in the second half of this year, with Milan, Nice, Prague and Budapest under consideration for later, Fernandes said. AirAsia is in talks to buy more Airbus A330 jets to operate those routes, he added.

I wonder if D7 has any plan to tackle several regions which have proven to have a huge demand for flights into South East Asia - the Scandinavia and Russia. I think the flights into Moscow and Stockholm would be more successful than Milan/Nice/Prague/Budapest. Competition is lesser too.

[Syukri 0]

 

 

“If you take a plane to Hyderabad, it’s four hours there, four hours back and you lose that plane for the whole day,” Fernandes said. “If I take that route out I can do another three flights to Singapore and the return is much better.”

 

 

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110215225944/Article/index_html

 

I'm not any metallurgist nor an engineering specialist but is it safe to continously used the same aircraft on a short-haul flight over n over again? Because I believe a fuselage have their limitations on compression n decompression cycle, which mean continous short-haul flight will affect a fuselage intergrity.. Like the incidents happen with the hawaiian company which d aircraft (B767? I forgot) have almost get ripped-off when part of the fuselage just tears away...

[Ahmad M 1]

That Hawaiian aircraft was a B737-200. Not really a problem for AK at the moment because of the young age of their fleet and I don't think they plan to keep any of their planes for too long anyways.

[Mohd Suhaimi Fariz 2]

I'm not any metallurgist nor an engineering specialist but is it safe to continously used the same aircraft on a short-haul flight over n over again? Because I believe a fuselage have their limitations on compression n decompression cycle, which mean continous short-haul flight will affect a fuselage intergrity.. Like the incidents happen with the hawaiian company which d aircraft (B767? I forgot) have almost get ripped-off when part of the fuselage just tears away...

 

The Aloha 737-200 had the highest takeoff-landing cycles ever for the 737-200, which was way beyond the design limit. Plus, maintenance efforts was a bit lacking.

[flee 5]

Not really a problem for AK at the moment because of the young age of their fleet and I don't think they plan to keep any of their planes for too long anyways.

By the time the A320NEO is available, AirAsia's oldest A320s (the 9M-AFx series) would be around 10 years old - they will still have resale value and can be retired from the fleet.

[flee 5]

I didnt think the A330 could travel that far non stop?

Well there is an improved version of the A330, the -300HGW that gives a little more range. That should be enough for D7 to reach continental European destinations.

 

Concerning the A330, "an announcement will be made on that soon, within two weeks," he added. "We are a big believer in the A330."

[N Azman 0]

I'm not any metallurgist nor an engineering specialist but is it safe to continously used the same aircraft on a short-haul flight over n over again? Because I believe a fuselage have their limitations on compression n decompression cycle, which mean continous short-haul flight will affect a fuselage intergrity.. Like the incidents happen with the hawaiian company which d aircraft (B767? I forgot) have almost get ripped-off when part of the fuselage just tears away...

 

completely safe. maintenance interval for most critical parts are based on cycles. metal fatigue comes eventually but technology is in place to detect these problems during each interval.

[flee 5]

AirAsia expects to convert some A320 orders to A320neo

 

Malaysian budget carrier AirAsia has indicated that it expects to convert some of its existing Airbus A320 orders to the re-engined A320neo, although Airbus has a general policy of not allowing conversions.

 

AirAsia's group chief executive Tony Fernandes says an order announcement "will happen soon. "It's a $7 billion deal. As much as I like to get things done quickly, you can't rush it."

 

In 2016, the airline will be left with only 10 A320s on delivery, says Fernandes. Airbus plans to introduce the A320neo in 2016. AirAsia has 86 A320s on order, as listed by Flightglobal's ACAS database.

 

The airline said in February that it had pushed back the delivery of 10 A320s from 2012 to 2015, which would give it some flexibility to switch between the existing A320 variant to a "new-generation A320, which is more fuel efficient".

 

Airbus has said it is "not foreseen" that customers with existing orders for A320s will be able to switch to A320neos, but Fernandes indicates that conversions are likely to take place. However, he adds that these will be minimal. "We don't need to convert that many," he says.

 

AirAsia has previously deferred deliveries for other reasons, such as infrastructural constraints at the airport it serves.

 

However, it recently accelerated the delivery of two to three aircraft for its associate carrier in the Philippines, says Fernandes. The A320s, originally scheduled to be delivered in 2012, will now arrive at the end of 2011 instead.

 

The Manila-based affiliate carrier will begin international flights in the fourth quarter of this year.

 

Source: http://www.flightglobal.com/articles/2011/03/31/354933/airasia-expects-to-convert-some-a320-orders-to-a320neo.html

[Gavin Andrew David 6]

Would be the most sensible thing to do , especially since they are delaying their deliveries of the 320's

 

They can look into the future and plan a conversion of those 320's or even bid to be the launch customer of the NEO

[JuliusWong 0]

AirAsia appeared close on Friday to what could be a major deal to buy Airbus passenger jets, weeks ahead of the Paris Air Show.

 

The low-cost Malaysian airline said in February it was considering buying up to 175 of a revamped medium-haul passenger jet called the A320neo, as well as wide-body A330s.

 

AirAsia chief executive Tony Fernandes took the unusual step of revealing a key twist in negotiations on his Twitter account -- mixed with a plug for Team Lotus, his Formula One racing team.

 

Source Link: http://news.airwise.com/story/view/1305936623.html

[JuliusWong 0]

AIRASIA WANTS TO RIVAL SOUTHWEST

 

Being number one in Asia is no longer enough for low-cost airline boss Tony Fernandes. Now he wants to double the size of Malaysian carrier AirAsia's fleet to catch up with industry titan Southwest Airlines....

 

The expansion plan reflects confidence in a fast-growing Asian transport market which continues at a blistering pace despite concerns over fuel prices.---> fuel price is not a concern for AK.

 

GE and French partner Safran are trailing well behind Pratt & Whitney in the battle to supply engines for the A320neo...---> possible switch in engines manufacturer.

 

Source Link: http://news.airwise.com/story/view/1306157019.html

 

I forsee at least 200 minimum order for A320neo and possible switch to Pratt....its getting very exciting.

[Zamir 0]

Malaysia-based AirAsia has said it is considering buying at least 150 of the “A320neo” aircraft as the region's largest budget carrier expands in the face of high oil prices.

 

But industry sources told Reuters that the range of negotiations is higher than previously expected and could reach 200 planes, trumping a 180-plane provisional order from India's IndiGo as the industry's largest ever by number of aircraft.

 

“They are talking about 150 to 200 aircraft,” an industry source familiar with the negotiations said, asking not to be named.

 

Such a deal would be worth $14 billion to $18 billion at list prices, depending on the exact model of aircraft involved, though big plane orders tend to generate significant discounts.

 

The record for the largest Airbus deal by value is held by Emirates airine with a $22 bilion purchase in 2007.

 

EADS subsidiary Airbus declined to comment. A spokesperson for AirAsia said talks were continuing.

 

Both sides hope to announce the deal at the Paris Air Show on June 20-26 but the size of the deal and its timing remain uncertain because of the sums involved, industry sources said.

 

AirAsia founder Tony Fernandes has set his sights on doubling the size of the nine-year-old airline to rival Southwest Airlines' fleet of more than 500 jets.

 

The airline has already ordered 175 of the original design of A320, of which 86 have yet to be delivered.

Source

Edited June 11, 2011 by Zamir

[alberttky 0]

PETALING JAYA: Malaysia Airlines (MAS) is set to announce new aircraft orders at the Paris Air Show next week, but rival AirAsia is aiming to conclude negotiations so that it can make a landmark aircraft order to double its fleet at the same show, sources said.

 

Those in the know claim that MAS will likely exercise its option to buy up to 20 B737-800s and the announcement will be made on Tuesday. Based on catalogue prices, each of this new generation aircraft which uses 15% less fuel is priced at US$80.8mil and MAS being a long-term customer may be get discounts. At catalogue prices, the 20 will cost MAS US$1.6bil.

 

Whether or not MAS will exercise its option to buy 10 more A330-300s is not clear, but a visit to the Airbus plant in Toulouse in France has been planned after the Paris Air Show to view the first of the six A380 aircraft that has gone into the final assembly process.

 

MAS also plans to order 30 aircraft for its low-cost unit Firefly but details of when it will make that order is unclear.

 

MAS first ordered 35 B737-800s with an option for 20 more in 2008. Thus far it has taken delivery of four B737-800s and they are being deployed for certain routes. Subsequently it ordered 15 A330-300s with 10 options and has thus far taken delivery of two such aircraft.

 

MAS managing director Tengku Datuk Azmil Zahruddin said yesterday that “... we may find that we need more planes more quickly'' (given its collaboration with OneWorld airline group and the growth in demand for air travel expected in Asia).

 

The airline said it would have the youngest fleet by 2015 but to achieve that it needs to exercise its option and place new orders for Firefly pretty soon or it would not get its deliveries on time.

 

By 2015, MAS wants to have 55 B737-800s, 25 A330-300s and six A380s. Firefly will have 30 B737-800s and six ATRs then.

 

Its current fleet is a mix of aircraft that is about 15 years old and its challenge is to compete with peers that have the latest generation of aircraft including the A380.

 

Reports from Europe said AirAsia boss Tan Sri Tony Fernandes was likely to order as many as 200 Airbus jets in a landmark deal shaping up to dominate the Paris Air Show.

 

“The team is in Europe negotiating the deal for the new aircraft order and the announcement would depend on how fast they can conclude the negotiations. If they are unable, then the announcement will be made after the Paris Air Show, but the aim is to announce it at the air show. They are talking about a big order and it involves the A320neos,'' said a source.

 

A report said: “Such a deal would be worth US$14bil to US$18bil at list prices, depending on the exact model of aircraft involved, though big plane orders tend to generate significant discounts.''

 

Fernandes had earlier said he was set to double the size of the nine-year-old airline to rival Southwest Airlines' fleet of more than 500 jets. AirAsia has already ordered 175 of the original design of A320s, of which 86 have yet to be delivered.

 

Other global airlines are also expected to announce new orders at the air show. Yesterday Airbus got 72 new orders for A320neos from India budget carrier Go Airlines worth US$7bil, and Cebu Air of the Philippines ordered 30 A321neos, a stretched version of the A320 that comes with seven options, worth US$3.8bil.

 

As for MAS' A380 aircraft, the first aircraft entered the final assembly on June 7. Final assembly of this superjumbo consists of five main phases. “At the first station, front, central, and aft fuselages, wings, horizontal and vertical tail plane (HTP and VTP) are assembled,'' said a report. Then it moves to the second station where all the testing on electric/hydraulic systems, mobile parts and landing gears takes place. In the third phase final ground testing takes place. When the aircraft is ready for its first flight to Hambung in Germany, it would be fitted with its passenger cabin and painted in the MAS livery. The first aircraft will reach Malaysia in April next year.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/6/17/business/8920938&sec=business

[Mohd Suhaimi Fariz 2]

I've been told that Airbuses are cheaper to buy, but expensive to maintain, while Boeings are expensive to buy, but cheaper to maintain in the long run. Explains the fast turnaround for AK.

[Johan Z 0]

Wow, there will be a lot of Airbus and Boeing narrowbodies at KUL.

I thought MH would exercise options for 737-900ER?

 

My bet would be 77W and/or A332 since they need aircraft more quickly.

[Mohd Azizul Ramli 2]

The benefit of being associated with oneworld in just 10 days since the announcement.

[Sri Ramani K. 0]

I've been told that Airbuses are cheaper to buy, but expensive to maintain, while Boeings are expensive to buy, but cheaper to maintain in the long run. Explains the fast turnaround for AK.

 

You can only compare an apple to an apple, not an apple to an orange. Both of different age and mentality (although some might say they're similar). At the end of the day, it is the maintenance philosophy of the company that matters the most. It may differ from their utilisation rate, maintenance reliability program, spares pool and so many other factors which might seem very puny in our eyes.

[JuliusWong 0]

With the slew of Airbus A320NEO family order mostly coming from Asia, we will see loads and heaps of Airbus narrowbody in Asia soon. Philippines, India, Malaysia.... just to name a few. I haven't seen any Asia-based airline order 100 B737 at one shot, apart from China Government which is again broken down into numerous airlines. Ok, am neither Airbus nor Boeing fans. Boeing really needs to do something to counter Airbus soon.

 

With few days to Paris Air Show, orders with such big amount had been published. One is to wonder what is install for the Air Show itself???

 

Peru Air Force ordered 12 Twin Otters.

Edited June 17, 2011 by JuliusWong

[mohd sukri abd hamid 0]

MH Order B787-900 and A350-900

[Johan Z 0]

MH Order B787-900 and A350-900

Is it true?

787-9, no 0s after that.

Edited June 17, 2011 by Johan Z

[Radzi 2]

MH Order B787-900 and A350-900

 

How practical is that?

[Mohd Suhaimi Fariz 2]

MH Order B787-900 and A350-900

 

No news as of yet, so highly doubtful.

[mohd sukri abd hamid 0]

see what happen mate