Another 100 A320 for AK

[Seth K 3]

http://today.reuters.com/news/articleinves...6&type=qcna

 

AirAsia to order more Airbus A320s-WSJ

 

NEW YORK, Jan 3 (Reuters) - Malaysian airline AirAsia Bhd (AIRA.KL: Quote, Profile , Research) is set to to order 100 Airbus jetliners, increasing its existing order for single-aisle A320s, as it looks to expand its service in Southeast Asia, The Wall Street Journal reported on Wednesday, citing a person it said had knowledge of the decision.

 

The order would be worth $6.7 billion based on list prices, the Journal said. It would mark a huge win for Airbus, majority-owned by European aerospace group EADS (EAD.PA: Quote, Profile , Research), against U.S. rival Boeing Co. (BA.N: Quote, Profile , Research). The low-cost carrier expects to take delivery of the new planes starting in 2012, the Journal said.

 

Earlier this year, AirAsia ordered 40 A320s and took options to buy an additional 30. An Airbus spokesman declined to comment on the report. A call to AirAsia was not immediately returned.

Edited January 3, 2007 by Seth K

[Andrew Ong 1]

News release from AK about the 40 A320s ordered:

 

Airasia Selects CFM56-5B to Power Its 40 Firm And 30 Options Airbus A320 in $500 Million New Engine Order

 

KUALA LUMPUR – AirAsia, the leading low fare airline in Asia, has selected CFM International’s CFM56-5B engine to power its 40 firm and 30 options Airbus A320 aircraft. The purchase agreement for the firm engine order, which covers a total of 80 engines plus 6 spares, is valued at approximately USD$500 million at list price. Concurrently, AirAsia has today signed an OnPoint SolutionSM engine service agreement with General Electric Company (GE) for the maintenance, overhaul and repair of firm 86 CFM56-5B engines that will power the airline’s new fleet of Airbus A320-200 aircraft. The 20-year agreement is worth approximately USD$1.1 billion.

 

An official signing ceremony was held between both parties at Hilton Kuala Lumpur today. The purchase agreement was signed between Chaker Chahrour, General Manager of GE Aviation (the aviation arm of General Electric Company) and Dato’ Tony Fernandes, Group Chief Executive Officer of AirAsia Berhad.

 

CFM International (CFM), a 50/50 joint company between Snecma and General Electric Company, is the world's leading supplier of commercial aircraft engines, with more than 15,000 in service worldwide.

 

“We are very excited by AirAsia’s selection of the CFM56-5B to power its 40 firm and 30 follow-on order of A320 fleet,” said Chaker. “The decision reaffirms the –5B’s position as one of the most reliable engines in the world.”

 

Dato’ Tony Fernandes, Group Chief Executive Officer, AirAsia Berhad, said, “We have a synergistic relationship with our partners, GE Aviation and CFM International, and this signing marks the extension of the relationship with our confirmed order of additional 40 Airbus A320. We choose CFM56-5B engine based on its superior reliability, durability and performance. Having entered into our 5th year of operations, our order of 100 Airbus A320 will make AirAsia the youngest and most modern fleet in the region.”

 

“We have also appointed GE Aviation to undertake the engine maintenance programme for 20 years as they met our fleet requirements to further expand our network and strive for greater cost efficiency,” added Dato’ Tony.

 

AirAsia, which will become the single largest Airbus A320 operator in the Asia-Pacific region by year 2012 with this recent aircraft order, would operate a mixed fleet during the transition from Boeing 737-300s to the Airbus A320. The 180–seat A320s entered the fleet since December 2005. By July 2009, AirAsia’s fleet will be fully operated with 100 Airbus A320.

 

The high reliability, long on-wing life, and low maintenance costs of the CFM56-5B makes it extremely popular with leasing companies, low-cost carriers, and major airlines worldwide. More than 1,700 CFM56-5B engines have been delivered to date, and the fleet is growing at a rate of about 20 engines per month.

 

Primary factors behind the engine's broad-based market acceptance include reliability rates among the best in the industry (with a 0.001 in-flight shutdown rate) durability, and low cost of ownership brought about by the engines simple, rugged architecture. On average, CFM56-5B engines have a maintenance cost advantages of nearly $2 million per engine over a 15-year period versus the competition. The CFM56-5B is the only engine that can power every model of the A320 family keeping the same bill of materials, giving airlines a distinct commonality advantage.

 

 

SQ= Largest 777 operator

 

AK= Largest A320 operator????

Edited January 3, 2007 by Andrew Ong

[Pieter C. 5]

News release from AK about the 40 A320s ordered:

 

SQ= Largest 777 operator

 

AK= Largest A320 operator????

 

Largest Asian A320 operator, when all ordered 320's have been delivered

[Kee Hooi Yen 0]

IIRC, MH used to be the largest B734 operator outside the USA

[Andrew Ong 1]

IIRC, MH used to be the largest B734 operator outside the USA

 

Isn't MH still has that title as operating the largest B734 fleet outside the USA??

Edited January 3, 2007 by Andrew Ong

[Alan B. 5]

Isn't MH still has that title as operating the largest B734 fleet outside the USA??

 

not anymore. A few B734 have been sold or leased out and the title was largest B737 operator when they also had the B737-500 series ac which have all been sold.

 

Any idea what is the current fleet size?

[Gavin Andrew David 6]

Eh Guys , This is old news right ?

IIRC , Air Asia CONFIRMED the 100 a/c quite some time back

[Lawrence L 0]

 

I thought so too..

[Sim Lim Shen 0]

I think Seth is talking about rumors AK is adding another 100 A320 in addition to the 100 already in order. Does AK really need so many aircraft??

[Andrew Ong 1]

I think Seth is talking about rumors AK is adding another 100 A320 in addition to the 100 already in order. Does AK really need so many aircraft??

 

Maybe AK needs the extra A320s to replace all of the B733s in Thai AirAsia, Indonesia AirAsia and esp. Malaysia AirAsia????

[Gavin Andrew David 6]

http://today.reuters.com/news/articleinves...6&type=qcna

 

AirAsia to order more Airbus A320s-WSJ

 

NEW YORK, Jan 3 (Reuters) - Malaysian airline AirAsia Bhd (AIRA.KL: Quote, Profile , Research) is set to to order 100 Airbus jetliners, increasing its existing order for single-aisle A320s, as it looks to expand its service in Southeast Asia, The Wall Street Journal reported on Wednesday, citing a person it said had knowledge of the decision.

 

The order would be worth $6.7 billion based on list prices, the Journal said. It would mark a huge win for Airbus, majority-owned by European aerospace group EADS (EAD.PA: Quote, Profile , Research), against U.S. rival Boeing Co. (BA.N: Quote, Profile , Research). The low-cost carrier expects to take delivery of the new planes starting in 2012, the Journal said.

 

Earlier this year, AirAsia ordered 40 A320s and took options to buy an additional 30. An Airbus spokesman declined to comment on the report. A call to AirAsia was not immediately returned.

 

 

Air Asia took an initial 60 I believe and had option for another 40 .

In which they took the option to take the additional 40 .

 

Is there something wrong with this news report ?

[Ken K. Kour 0]

I think the order went like this..

 

Original - 60 Firm + 40 Option

2nd - 100 Firm + 30 Option

3rd - 150 Firm + 50 Option (this being the one thats flying around the news channels now)

 

oh, nad supposedly 20 A330 + 10 Option

 

would be interesting to see if any of this is mentioned tomorrow in their announcment

[Seth K 3]

The news suggest that AK is doubling their fleet to 200 unit of A320, and it's not old news....

 

Ken, if they "do" buy 20 A330, we not just talking about LON route, we might see, Japan, China mainland, Australia, India, MidEast(Summer??), multiple routes in Europe and some regional routes.......

Edited January 4, 2007 by Seth K

[Brennan Raj 0]

Now im confused..

[Gavin Andrew David 6]

The news is dated Jan 3rd but mentioned Earlier this year

How early ? lol

[Samuel Chy 0]

Now im confused..

 

second here...

[Seth K 3]

I'm confuse, so confuse about what you guyz confused about>>>

 

It currently has orders for 100 A320s.

 

"Certaintly, there is a need for another 100 A320 aircraft. AirAsia will be putting in its orders to meet growing demand.

 

"It is estimated to cost billions of dollars. Deliveries may start in 2012 or earlier once the original 100 aircraft are delivered," the source, familiar with the plans, told AFP on condition of anonymity.

 

[Gavin Andrew David 6]

If you included that , things would've beeen MUCH clearer ..

[Kee Hooi Yen 0]

It would be interesting to see if ALL the AK's A320 grounded at KLIA

[Sandeep G 1]

Hooi Yen, - Why grounded?

 

Everyone,

 

I think today's announcement will have an order for more aircraft as well, and this is what the WSJ is talking about. I am pretty sure that an order for 50 more A320s OR Boeing 737-800s was in the offing! Yes, you read right, B738s! But, Again, I understand that Airbus' discount was too good to refuse and well, naturally, Tony went with the A320 which is a delight in the fleet!

 

I wonder if the press conference is to be live on web-tv???? Anyone got any details of this?

[mokhzani 0]

I'm just wondering, 200 a/c, that would be about 1 or 2 a/c per month?, times 200 months(about 16 years) so by the time the last a/c reached the Malaysian shore, 9M-AFA would be a very old a/c wouldn't it?

[Pieter C. 5]

AirAsia To Double Airbus A320 Fleet To 200

 

January 5, 2007

Malaysian budget carrier AirAsia announced on Friday plans to double its Airbus A320 fleet to 200 as it looks to expand its service in the region.

 

AirAsia, which introduced its low-fare, no-frills concept in December 2001, has firm orders for 100 Airbus A320 aircraft, with options on 30 more.

 

"We are looking at topping up the order," AirAsia Deputy Chief Executive Kamarudin Meranun told reporters.

 

Asked how many in total AirAsia plans to buy, he said: "Maximum 200."

 

The additional 70 aircraft would potentially give the 5-year-old airline one of the biggest fleets in Asia.

 

"In the next seven years, we want to be the largest airline in Asia," AirAsia Chief Executive Tony Fernandes said at the launch of a low-cost long-haul service to be operated by FlyAsianXpress (FAX) in which he has a 50 percent interest.

 

Kamarudin said AirAsia, which has a market value of about MYR3.8 billion ringgit (USD$1.1 billion), expected to finalize its fleet expansion plan by the end of this month.

 

Fernandes has said that the airline, which has access to some 500 million people in its Asia Pacific service region, including Indonesia, Thailand, Vietnam and Malaysia, needs more aircraft to properly fuel growth.

 

At a list price of around USD$65 million, an additional 70 A320s would cost AirAsia USD$4.55 billion. In December, Fernandes said that any plane purchases would be paid for using bank loans.

 

FAX will begin a long-haul budget service called AirAsia X in July, flying to destinations in China, India and Europe. Fernandes said AirAsia X would be looking to buy 20 aircraft, and was considering either Airbus A330-300s or Boeing 777-300s.

 

FAX Chief Executive Raja Mohd Azmi said AirAsia X is targeting 500,000 passengers in its first year of operation.

 

AirAsia X would add further pressure on state-owned local rival Malaysia Airlines to successfully execute its profit turnaround plan, analysts have said.

 

Fernandes declined to comment on media speculation that FAX is in talks to establish a global low-cost tie-up with British airlines easyJet and Virgin Atlantic, though FAX did say it would consider tying up with other low cost partners.

 

AirAsia has been offered to acquire a 20 percent interest, with another 10 percent optional stake, in FAX, Kamarudin said.

 

FAX is an unlisted rural air service that currently operates in the eastern Malaysian states of Sabah and Sarawak.

 

The other owners of FAX are Kamarudin and Raja Mohd Azmi, with 30 percent and 20 percent stakes respectively.

 

(Reuters)

 

[Wai Hung 0]

wow, tony fernandes is really confident...

anyway, i would like to see a330s in airasia's fleet in the future...

[Kee Hooi Yen 0]

Hooi Yen, - Why grounded?

 

I mean parking at KLIA..... KLIA will be like a red sea

 

 

[Sim Lim Shen 0]

200 is a lot of aircrafts, probably will place AK one of the largest A320 operators in the world.

 

Before that happens, I would like to see a massive and rapid expansion of the LCCT. I was there a couple of weeks ago. With the current operation size, I think the current layout is close to saturation.