Blockbuster deal: AirAsia to buy 100 A321neo for $12.6 b

Anand Kalyanaraman London | Updated on January 17, 2018

Malaysia-based low-cost carrier AirAsia Bhd on Tuesday placed an order for 100 A321neo aircraft with Airbus at the Farnborough Airshow.

With a catalogue price of about $12.6 billion, this new order is in addition to the airline’s existing order for 300 A320neo. While the A320neo aircraft has a capacity of 180 seats, the A321neo can carry 240 passengers. This, the airline said, will allow it to bring higher passenger volumes with the same slots.

The delivery of the A321neo aircraft is expected to begin from the end of 2019.

Tony Fernandes, AirAsia Group CEO, said: “Over the years, AirAsia has grown from two aircraft to more than 200 aircraft. A lot of this is due to the partnership with Airbus.”

The new aircraft have been ordered at the group level, not necessarily taking India’s growth potential into account. That said, Fernandes is gung-ho about the prospects in the country. “We are really excited about the potential in India, especially after the recent changes in rules. We are looking to accelerate. How many aircraft can India have? The potential for Indian aviation is huge. We are into growing the market and are not into taking away market share,” he said.

About the induction of the A321neos in the Indian fleet, Amar Abrol, CEO, AirAsia India, said: “We always have the option of drawing on the parent company. That said, every decision of AirAsia India, including fleet induction, will be commercially evaluated.”

The writer is attending the Farnborough Airshow at the invitation of AirAsia

Published on July 12, 2016

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