June 10, 2011 at 11:29 am
Reuters) – AirAsia (AIRA.KL) could buy as many as 200 Airbus planes in a landmark deal that is potentially set to dominate the Paris Air Show, industry sources said.
The Malaysian budget carrier has said it is considering buying at least 150 revamped A320 planes with fuel-saving engines as it expands operations in the face of high oil prices.
source: http://www.reuters.com/article/2011/06/10/airbus-airasia-idUSLDE75600E20110610
Boeing needs to act fast to counter the 320NEO.
By: KabirT - 10th June 2011 at 12:15
For the first time with some confidence I can say that the 787 is finally on track now. The recent flight trials by the ANA crew in Seattle was a very good step. ANA now has two sets of crew ready to operate the 787. Boeing says the first 787 will be with the carrier in Q3 and operational and airport trials will be conducted next month at Narita and Haneda.
I think the 320NEO is raking in a lot of orders due to a couple of factors.
1: The airlines are very apprehensive and concerned about the cost of fuel. There is no way, that the cost of oil will go below $100 p/b, ever. Crude oil will now remain steadily over $105 p/b and this will hurt the airlines, specially the low cost airlines. For example, Air Asia operates to a lot of countries where fuel prices are extremely high, much higher than world average. Places such as Vietnam, Cambodia etc. IN Europe as well, recently LH CEO said that they are failing to get there Europe operations back into profitability due to oil prices and the weak economy.
2: There is no competition to the NEO. I don’t have numbers but the NEO does save a good amount of fuel per-mile than the 738. So it makes sense for airlines to go for it.
3: A lot of ‘orders’ for the NEO from airlines like IndiGo are mere changeovers from the current 320 series. They are not new orders.
Having said all this it is clear the 320NEO will sell like hotcakes at Paris this year. Boeing has been a little slow in there preparedness, mainly because of the 787 programme and the 748 programme. The 748 programme is a little silly since its in direct competition with the 77W.
Anyway Boeing will get about 30 new 77W orders from EK itself at PAS11, so they have something there.
Airbus might also get 10 new 330 orders from Jet Airways as well.
By: nJayM - 10th June 2011 at 11:51
You have some of the answers to why Boeing is perceived as slow
From what I know, or my sources inform me Boeing is still not sure whether to re-engine the 737 airframe or come out with a totally new jet to replace the 737.
This decision is not being taken fast enough by Boeing, I know it’s not an easy task but modifying the 737 further does not seem to be the right way for Boeing to go. They may loose orders to the 320 while they come up with a new design but they will definitely have an edge over Airbus in the future, even if that means they loose some business on the way.
There is still speculation that a major Boeing customer may announce a big order for the 320NEO at PAS’11.
You have some of the answers above. In the Airbus- Boeing commercial tussle their will be always ups and downs.
Boeing must make the 787 work, recover losses and also advance their management of new composite airframes including continuously writing new tests and gain knowledge about these new materials being in the conditions 787 customers will put them through.
Somewhere do you not think that the possibility is that they have in their labs the designs for a new aircraft but will see how the success of the 787 goes, also see the progress of the Airbus A-350 before announcing the new project?
After PAS’11 there is F’Borough 2012 and PAS’13 and there will be opportunities for Boeing to take back any lost ‘high ground’.
I firmly believe there is room for both in this world.
By: KabirT - 10th June 2011 at 11:40
From what I know, or my sources inform me Boeing is still not sure whether to re-engine the 737 airframe or come out with a totally new jet to replace the 737.
This decision is not being taken fast enough by Boeing, I know it’s not an easy task but modifying the 737 further does not seem to be the right way for Boeing to go. They may loose orders to the 320 while they come up with a new design but they will definitely have an edge over Airbus in the future, even if that means they loose some business on the way.
There is still speculation that a major Boeing customer may announce a big order for the 320NEO at PAS’11.
By: nJayM - 10th June 2011 at 11:33
Do you feel Boeing is not?
Reuters) –
Boeing needs to act fast to counter the 320NEO.
Hi KabirT
Do you feel Boeing is not ?
They aren’t naive not to have something up their sleeve?