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

[J. Suri 0]

see what happen mate

 

so no 77W or at least 747-8...:-(

[alberttky 0]

PETALING JAYA: AirAsia Bhd will have to move fast to secure early delivery slots for the new A320neo family of aircraft if it wants to double its fleet size by 2020.

 

“Any order the size of 175 to 200 aircraft will take a delivery period of nearly 10 years and AirAsia needs to book early to get the aircraft beginning 2016,” said an analyst. Airbus is planning to begin deliveries in 2016.

 

Analysts also expect Thai AirAsia and Indo AirAsia to pay for their aircraft needs in the future and they could fund their purchases from the proceeds of their initial public offerings.

 

“Airbus is hoping for AirAsia to be its biggest customer for the A320neos,” said Centre for Asia Pacific Aviation analyst Brendan Sobie in a report.

 

He added that Airbus had been holding early A320neo delivery slots for AirAsia and some of its other leading customers, but AirAsia needed to act quickly to ensure these slots were not given to other carriers.

 

HwangDBS Vickers said in a report that if AirAsia bought 200 A320neos, it could cost US$14bil-US$18bil (RM42.6bil-RM54.7bil) based on list prices.

 

“Should this materialises, we believe the delivery schedule could stretch over more than 10 years (similar to the previous order of 175 A320s),” the research house said.

 

AirAsia boss Tan Sri Tony Fernandes wrote in a text message to StarBizWeek that he had “no comments” when asked if he was going to place new orders for aircraft during the forthcoming Paris Air Show. Many expect Fernandes to surprise the market with a landmark order for aircraft at the event.

 

Fernandes said recently that he was looking to double the airline's fleet.

 

Sobie said Fernandes had also hinted during his conference call with analysts last month that an A320neo order could be imminent. During his presentation, Fernandes showed a slide which predicted that AirAsia would operate 320 to 510 “A320-equivalent” aircraft by the end of 2020.

 

The A320neo offers 15% reduction in fuel consumption, two tonnes of additional payload, up to 500 nautical miles of more range and lower operating costs, along with reductions in engine noise and emissions. The A320neos were launched late last year.

 

However, negotiations are still underway between AirAsia and Airbus and whether AirAsia can place the order next week will depend on both parties concluding the negotiations.

 

Fernandes is scheduled to meet AirAsia shareholders at the company's AGM on Monday, after which he would announce the setting up of a new aviation training centre in Malaysia. According to a press invite, the centre will be a huge boost to the aviation industry, particularly in Asia.

 

Sobie said the A320neo would allow for a further reduction in unit operating cost (which is already the lowest in the industry at 4.15 US cents) and switching to a new variant in 2016.

 

He expects the new order to comprise at least 145 A320neos and include up to 335 additional aircraft when factoring in options. This would cement AirAsia's position as the region's largest low-cost airline group and eventually one of the biggest airline groups in the world.

 

AirAsia now operates 89 A320 aircraft for its operations in Malaysia, Thailand (Thai AirAsia) and Indonesia (Indo AirAsia). It also has joint ventures in the Philippines and Vietnam.

 

Sobie said to cater for growth in the second half of the decade, the airline needed to order soon. Its last order was made in November 2007.

 

Meanwhile, Bloomberg reported yesterday that AirAsia carried 20.4% more passengers in May compared with the same month a year earlier.

 

Citing an e-mailed statement, it said the airline's load factor rose to 79% in May from 75% last year.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/6/18/business/8927022&sec=business

[Josh T 0]

What we'll see at the Paris Air Show is the conversion of the options into firm orders for the B738 +/- A333.

[Mike P 0]

AirAsia finalising to buy 200 aircraft worth US$18bil

By B.K. SIDHU

bksidhu@thestar.com.my

 

 

 

 

SEPANG: AirAsia Bhd is aiming to set up three more joint ventures to grow its ancillary income and is also in the midst of finalising a deal which it will announce on Thursday to buy nearly 200 aircraft costing US$18bil that it needs to fuel growth from 2015 onwards.

 

“We are looking at three more joint ventures to grow our ancillary income,'' AirAsia group chief executive officer Tan Sri Tony Fernandes said without elaborating.

 

The low cost airline's ancillary income grew to RM50 per passenger in the first three months of 2011 versus RM38 in the previous corresponding year. Fernandes wants to increase it to RM60 per passenger in 2012.

 

Recently, it agreed on a JV with US travel agency Expedia to boost ancillary income and yesterday it entered into another JV with Canada's CAE - a global leader in flight training solutions to turn its aviation training centre from a cost to profit centre.

 

 

Done deal: CAE group president Jeff Roberts (left), Deputy Higher Education Minister Datuk Saifuddin Abdullah and Fernandes (right) at the signing ceremony for the formation of the Asian Aviation Academy between AirAsia and CAE.

“It is the first joint venture of its kind in the Asean region that will offer training for airlines throughout Asia,'' said Fernandes at the JV signing ceremony held after the company's AGM yesterday.

 

Known as Asian Aviation Centre of Excellence Sdn Bhd, the 50:50 JV between CAE and AirAsia will involve an initial investment of RM200mil.

 

The facility will provide AirAsia and other airlines training services for pilots, flight attendants, engineers, ramp handlers, guest services staff and aviation management.

 

CAE is headquartered in Montreal, and has been in the business for 65 years. It has operations in 20 countries. Its other centre in the region is in Zuhai in China.

 

Fernandes said the setting up of the training centre would positively contribute to AirAsia's vast expansion plans by providing highly skilled and certified personnel required for the airline's fast growing fleet and operations.

 

AirAsia has been on expansion mode for a long time and Fernandes has made it known that to cater for the “massive growth potential'' in the region, the airline needs to grow its fleet size from 100 to 500.

 

This has drawn some criticism as 500 is seen as too big a fleet to have but Fernandes' rationale is that the growth has yet to be fully exploited and being a point to point airline it has a “capability to have 500 aircraft. We have to cater to the demand of 600 million people in this region, besides India and China.''

 

After having bases set up in Thailand, Indonesia, the Philippines and Vietnam, AirAsia's next target is to set up a base in Singapore but that depends on how fast it can obtain regulatory approval, although the submissions have all been made.

 

Its joint venture in the Philippines is set to take off by October when the JV airline will begin plying the Clark-Singapore, Clark-Hong Kong and Clark-Macau routes.

 

Eventually, its JV in Vietnam will also take off and with the growth for air travel in Thailand, Indonesia and even Malaysia, the airline needs more aircraft.

 

“Our (existing) aircraft takes us till 2015 and (with the kind of growth we are experiencing) of being in five countries ... we absolutely need more aircraft.

 

“We could be taking three airplanes per month and in a year 36, and over five years it could be another 200-odd planes.

 

“So (our forecast of having) 500 aircraft is very achievable. The momentum is very strong ... and our growth (strategy) has been by creating new markets,'' Fernandes said.

 

He and his long time partner, Datuk Kamarudin Meranun, are in Paris today to finalise a deal with Airbus and talk has it that he would announce a landmark deal of nearly 200 A320neos this Thursday to mark the finale of the Paris Air Show.

 

As for destinations, he said Africa in 2012 was not inconceivable.

 

However, he did not elaborate on the exact destinations.

[alberttky 0]

SEPANG, Malaysia - AirAsia chief Tony Fernandes said Monday he expects the airline to expand its fleet of jets from 93 to around 500 by 2020 to meet surging demand for air travel across the booming continent.

 

"It is really up to us how we take delivery but honestly 500 aircraft is very achievable," he told reporters after announcing a $200 million join-venture deal with Canadian firm CAE to run an airline training centre.

 

Fernandes said AirAsia has placed an order of 175 A320 aircraft which will be fully delivered by 2015 but to meet its expansion plans in Indonesia, Philippines, Thailand and Vietnam it would need another 200 aircraft.

 

"We could be taking three planes a month by then (from 2015) which is 36 planes a year ... over five years that is another 200-odd planes," he said.

 

AirAsia has a fleet of 93 aircraft serving about 160 routes in Asia and over 520 flights daily from hubs in Malaysia, Thailand, and Indonesia. It will take delivery of another seven this year.

 

Fernandes made the remark amid reports the airline, which is the continent's largest budget carrier by fleet size, could be set to conclude a deal with Airbus for up to 200 Airbus A320 jets at this week's Paris Air Show.

 

The aviation tycoon declined to confirm the reports but said he will make a further announcement at the Le Bourget aviation show in the French capital on Thursday.

 

Earlier Fernandes said the Asian Aviation Academy will train pilots, cabin crew, maintenance workers and ground personnel for AirAsia and other airlines in the Association of Southeast Asian Nations region.

 

Montreal-based CAE provides simulation and modelling technologies and integrated training for civil aviation industry and defence forces.

 

http://www.asiaone.com/News/Latest%2BNews/Asia/Story/A1Story20110620-285102.html

[Andrew K 0]

Looks like MH ordered 10 more 738s. 10 options left.

[BC Tam 2]

Has it been three years since MH placed the initial 738 order ?

[Pieter C. 5]

PETALING JAYA: AirAsia Bhd will have to move fast to secure early delivery slots for the new A320neo family of aircraft if it wants to double its fleet size by 2020.

 

He added that Airbus had been holding early A320neo delivery slots for AirAsia and some of its other leading customers, but AirAsia needed to act quickly to ensure these slots were not given to other carriers.

 

Hope TF can still have 'his' early 320neo slots, now that Indigo of India has ordered > 100 aircraft !

[Mohd Azizul Ramli 2]

Has it been three years since MH placed the initial 738 order ?

Yes it is. The previous purchase of 35 B738 was made at Farnborough 2008.

[Mike P 0]

Boeing, Malaysia Airlines Announce Order For Ten Additional 737s

June 21, 2011 20:21 PM

 

 

Boeing and Kuala Lumpur-based Malaysia Airlines today announced the airline has exercised an option to purchase 10 additional Next-Generation 737-800s. Pictured here is a 737-800 in Malaysia Airlines livery. Pic: Courtesy of Boeing

 

Kuala Lumpur, June 21 (Bernama) -- Boeing and Kuala Lumpur-based Malaysia Airlines today announced the airline has exercised an option to purchase ten additional Next-Generation 737-800s.

 

The order is valued at more than US$800 million at current list prices.

 

The airline still has purchase rights for an additional ten Next-Generation 737-800s remaining from their initial 2008 contract.

 

Today's announcement was made at the Paris Air Show by Boeing Commercial Airplanes Vice President of Sales & Marketing Marlin Dailey and Malaysia Airlines Managing Director & Chief Executive Officer, Tengku Datuk Seri Azmil Zahruddin Raja Abdul Aziz.

 

His Excellency Tan Sri Abdul Aziz Zainal, the Malaysian Ambassador to France, was also in Paris for the signing ceremony.

 

"Today we celebrate Malaysia Airlines as key member of the Next-Generation 737 family of operators and we welcome this occasion to strengthen our long-term relationship with a valued partner," Dailey said in a statement.

 

"The selection of the Next-Generation 737 to support the airline’s strategic fleet modernization plan reinforces the superior economics of the most fuel efficient single-aisle airplane operating in today's market," he added.

 

Malaysia's 737s are the first in Asia to sport the passenger-pleasing "Boeing Sky Interior" and are fitted with Blended Winglets, which improve fuel efficiency by up to four percent, increase flying range, and reduce CO2 emissions and takeoff noise.

 

"The option we exercised today marks another step in Malaysia Airlines' mission to strengthen and build upon the airline’s award-winning service and passenger value, efforts that support the company’s business transformation strategy to profitable operation.

 

"Boeing's Next-Generation 737, with its economic advantages, including unmatched fuel efficiency, is the right airplane to support our business and our customers," said Tengku Azmil.

 

The digitally designed Next-Generation 737 is the most technologically advanced airplane family in the single-aisle market.

 

The 737-800, which can seat up to 189 passengers, is 771 kilograms lighter and can fly 583 kilometres (315 nautical miles) farther while carrying 12 more passengers than the competing model.

 

Malaysia Airlines, with a 64-year history as the national carrier of Malaysia, operates a mixed fleet of short- and long-haul airplanes, including 747 passenger and freighter, 777, 737-800s and Classic 737 airplanes.

 

The airline flies nearly 45,000 passengers daily to more than 100 destinations worldwide.

 

The order was previously posted on the Boeing Orders and Deliveries Web site, attributed to an unidentified customer.

 

-- BERNAMA

 

http://aviation.bernama.com/news.php?id=595775&lang=en&cat=b

[suadrif 0]

No wide-body order yet?

[Lock SH 0]

Maybe assuming the role of feeder service to big brothers in OneWorld Alliance ....... hence the narrow body jets suit the job well ....

 

 

 

[suadrif 0]

What about their aging B777?

[Sri Ramani K. 0]

AirAsia rules Paris Air Show with record order

 

LE BOURGET, France (Reuters) – AirAsia thundered into the Paris Air Show with a record order for 200 revamped A320neo jets plus 100 options on Thursday -- an $18.2 billion deal making the Malaysian firm Airbus's largest airline.

 

AirAsia chief executive and Formula One boss Tony Fernandes flew into France overnight to sign off on what one Paris brokerage termed an "amazing" 200-plane deal, which is also seen as a coup for engine maker CFM International.

 

The deal wraps up a frenetic Paris Air Show which confirmed a strong rebound in Asian demand and sent industry records clattering like an airport departure board.

 

It also marks an attempt by Airbus to prove the case for its decision to update the best-selling A320 passenger plane, the backbone of low-cost airlines, and put pressure on rival Boeing which is undecided whether to match or trump that move.

 

The AirAsia order eclipsed a $16 billion order for 180 aircraft from India's Indigo, sealed on Wednesday, as the biggest ever civil aircraft order by the number of planes.

 

Shares in Airbus parent EADS bucked a weaker stock market on Thursday and rose over 1.6 percent to 22.2 euros.

 

In a key detail, AirAsia also plans to take another 86 aircraft already on order from Airbus to feed growth in its markets, quashing speculation of conversions to the new plane.

 

The higher than expected figure of 200 planes was first reported by Reuters on June 10. On Wednesday, industry sources disclosed talk of 100 additional options.

 

http://news.yahoo.com/s/nm/20110623/ts_nm/us_airshow_28?utm_source=twitterfeed&utm_medium=twitter

[Kee Hooi Yen 0]

Congratulations to AK !

[Pieter C. 5]

Congratulations AK and well done Airbus !!!

 

Even American Airlines has been talking to Airbus for 320neo's, I read today: what a blunder for Boeing !!!

 

and........what about Ryanair participating in the Chinese C-919 project ? They were a faithful Boeing operator as well (!)

[T Azahan 1]

AK power!!!

 

MH, donno what to say...... <_>

[Mike P 0]

AirAsia flying high with 200 A320neos order

By B.K. SIDHU

bksidhu@thestar.com.my

 

 

 

 

PETALING JAYA: AirAsia Bhd has come long way from its humble beginning, marked by a landmark order of 200 A320neos in Paris on Thursday. Its share price climbed 5 sen as it reacted to the news.

 

This new order would ensure that this carrier would always have a youngish fleet, vital in terms of product offering and costs and drive Air Asia's longer-term business direction, said analysts.

 

“We reckon that bulk of the new order comprises replacement aircraft to keep AirAsia's fleet young.

 

“At the current average fleet age of three-four years, the delivery of the A320neos come 2016, will ensure that the fleet averages five to six years, in line with Singapore Airlines' (SIA) in the longer term. Keeping its aircraft young ensures savings in the form of low maintenance charges and more efficient fuel burn,'' says OSK Research in its report.

 

This new variant of the A320 jets are 15% more fuel efficient and “assuming that AirAsia's current fleet consists entirely of A320neos, the airline's EBITDA would be 18.2% higher on the back of a 17% savings in fuel consumption.''

 

AirAsia became Airbus largest airline at the finale of the Paris Air Show on Thursday. The deliveries are stretched over a 10-year period beginning 2016 to 2026 which will see it accumulating 375 aircraft.

 

The new aircraft, with a seat capacity of 180, will be used on routes of up to four hours on AirAsia's extensive route network of 130 routes and 63 destinations in South-East Asia, China, India and Australia via Bali, Indonesia.

 

This new order, worth US$18.2bil (RM55.2bil) will be financed via company's internal reserves and cashflow.

 

“We are not entirely worried about AirAsia's gearing as we see the group returning to positive free cashflow by 2014.

 

“Nonetheless, despite its gearing, AirAsia has been able to generate strong bottom-lines and superior margins compared with its peers,'' OSK said.

 

The research house maintains its “buy” call on the stock with its future value at RM3.89.

 

CIMB Research said the new orders was a positive development and felt that the airline will not overstretch its balance sheet as its Thai and Indonesian associates should be able to take these planes in their own names post-listing and AirAsia has the option to dispose of the older model.

 

The new planes are also needed to grow its Philippines and in future, Vietnam operations.

 

CIMB maintains its forecasts, RM4.20 target price which is 9 times the price-earning ratio.

 

“AirAsia's low-operating costs and strong demand put it in the best position to ride out high oil prices and global overcapacity. A potential catalyst is the listing of its two associates,'' it said.

 

At 375, the fleet is still 125 short of 500.

 

That's the number AirAsia boss Tan Sri Tony Fernandes wants the fleet size for AirAsia to be eventually.

 

Fernandes wants to turn the low-cost carrier which now has hubs in Thailand, Indonesia, Vietnam, Philippines and probably in Singapore soon (subject to relevant approvals) into a global airline with the largest fleet that will rival US-based Southwest Airlines. The US carrier has a fleet size of 522 aircraft.

 

AirAsia now has in operations 89 of the 175 planes ordered in 2007 and the last delivery for that batch is in 2016. Along with the new order the airline also confirmed the purchase of engines that will be developed by CFM International.

 

Nomura Financial Advisory and Securities is of the view that a consolidation is more likely. It cited a study conducted by McKinsey in 2002 on European and American low-cost carriers that revealed that a winner-takes-all dynamic heavily favours the first mover, while later entrants face more challenges with some going bankruptcy.

 

Based on that and the population similarities to Europe, “we think this large aircraft order (assuming its on track) may precipitate other airlines around the region to either shape up or ship out.''

 

AirAsia has also been named the world's best low-cost airline for the third consecutive year, according to London-based aviation consultants, Skytrax yesterday.

 

“Not bad from where we started ... it just makes me emotional,'' Fernandes said.

 

AirAsia is also the world's third largest low-cost carrier by market cap, behind Southwest (market cap of US$8.53bil (RM25.89bil) and RyanAir US$8.84bil (RM26.83bil).

 

However, HwangDBS Vickers remains concerned on the stock in the near term given the current high oil price which could affect demand and dampen earnings. Oil prices is indeed a concern even though price traced back a bit yesterday.

 

Early this month, the International Air Transport Association slashed its profit forecast for airlines by half to US$4bil. On Monday it also warned that premium air travel had also slumped because of Japan's nuclear crisis, weakening world trade and Middle East turmoil but economy class rebounded slightly. However, demand for low-cost travel remains good.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/6/25/business/8970489&sec=business

[alberttky 0]

Low-cost airline, AirAsia, is set to become one of the biggest airline groups in the world following its landmark order of 200 Airbus A320 Neos, says Frost & Sullivan Aerospace & Defence senior consultant Kunal Sinha. He said the firm order by AirAsia validates three important trends.

 

Apart from the rise of AirAsia, he said the centre of air transport is shifting from North America towards Asia and the market has given a thumbs-up to the A320 Neo product.

 

"The AirAsia deal is the largest ever single order placed with Airbus in terms of number of aircraft.

 

"The AirAsia group currently operates 89 A320s and already has orders for another 86 A320s. The 200 A320 neos, which will be powered by CFM LEAP-X engines, will be delivered from 2016 to 2026," he told Bernama today.

 

 

Sinha said growth in the commercial aircraft fleet is likely to shift to new territories -- Asia Pacific, China and the Middle East.

 

He said it is expected to follow a different pattern that brought the North American and European markets to maturity. Narrow body aircraft are expected to form the bulk of the order instead of turboprop and regional jets.

 

Sinha said Boeing has recently forecast that the Asia Pacific region would require 11,450 aircraft worth US$1.51 trillion till 2030. Asia Pacific will account for about 30 per cent of the global delivery.

 

The A320neo offers an expected 15 per cent improvement in fuel burn compared to the current generation A320. Thus it allows airlines, particularly the LCCs, to further reduce their unit

operating costs.

 

Sinha said ordering 200 aircraft was a necessity for AirAsia as the last order AirAsia placed was in November 2007. AirAsia Group chief executive officer Tan Sri Tony Fernandes has

categorically said the affiliates of AirAsia in Thailand and Indonesia would be receiving a large chunk of the 200 additional aircraft.

 

The company plans to utilise the upcoming initial public offering (IPO) of AirAsia Indonesia and Thailand to fund the acquisition.

 

Sinha said the new order, however, only gives Air Asia a fleet of 250 aircraft at the end of 2020. He said AirAsia will therefore need to significantly accelerate its current

A320 and A320neo delivery schedule to meet its vision of operating at least 320 aircraft by 2020.

 

"Nonetheless, this order has cemented AirAsia’s position as the region’s largest low-cost airline group, making it one of the biggest airline groups in the world," he added. -- Bernama

 

Read more: AirAsia on track to be a top airline group http://www.btimes.com.my/articles/20110704160952/Article/#ixzz1R930xQ9d

[KK Lee 5]

Blockbuster deal: Airbus' record jet order to get even bigger

By Ben Mutzabaugh, USA TODAY

 

Reuters reports "AirAsia has drawn up plans to buy an extra 100 Airbus A320neo jets, potentially taking its record-breaking order to 300, a source with direct knowledge of ongoing discussions said."

 

If true, Reuters adds "such a deal would make the Malaysia-based low-cost airline one of the world's largest carriers. … ."

 

Just as significantly, Reuters suggests such a move also "could increase pressure on Boeing to clarify its strategy for countering its European rival's plans to upgrade its A320 medium-haul jet."

 

AFP also cites an unnamed source in reporting that AirAsia plans to up its order.

 

"In addition to the 200 which is a firm order, AirAsia is putting an option to order another 100 A320neo aircraft. Our target is to have 500 planes," an unnamed "top official familiar with the deal" is quoted as telling AFP on the condition of anonymity.

 

News of the fattened order comes just two weeks after the initial one, which already had been billed as the biggest in commercial aviation history (as measured by number of aircraft). That order had been announced at the Paris Air Show at the end of June.

 

http://travel.usatoday.com/flights/post/2011/07/airbus-airasia-airbus-a320neo-deal/720159/1

[flee 5]

AirAsia may order 25-30 A320s

 

AirAsia Bhd, Asia’s biggest discount carrier, may order 25 to 30 A320 Airbus planes within three to four months as air travel in the region continues to grow, Chief Executive Officer Tony Fernandes said.

 

“I’m evaluating whether we look at another 25 to 30 more A320s,” the CEO told journalists in Paris. The decision will be taken to the company’s board and made “within the next three to four months.”

 

“Our present order book we are looking at extending, increasing the number per year, which means that there will be a gap; if we take 22 or 23 aircraft a year, we will fullfill our 175 order,” he said.

 

“Our growth will probably exceed the aircraft that we have right now.”

 

The initial public offerings of AirAsia’s units in Thailand and Indonesia will “give us the ability to probably take more aircraft,” Fernandes said.

 

Source