AirAsia Places $12.6-Billion Order For 100 Planes

Farnborough: To cater to the rising demand, Malaysian budget carrier AirAsia on Tuesday said it will buy 100 new aircraft from Airbus valued at more than $12.6 billion.

The A321neo - the largest model in the best-selling A320 family - aircraft can seat up to 236 passengers in a single class layout.

AirAsia said it has signed a firm order with Airbus for the purchase of 100 A321neo aircraft, and the new planes would help it raise capacity as well as increase efficiency to meet ongoing growth.

At the current average list prices, the 100 A321neos would be worth more than $12.6 billion (over Rs 84,300 crore).

In India, AirAsia operates the airline along with the Tatas as its joint venture partner.

Announcing the deal at the Farnborough Airshow, AirAsia Group CEO Tony Fernandes said A321neo would help the airline "to meet ongoing strong demand as well as further reduce our cost per Available Seat Kilometre across the group, which will translate to lower air fares for our guests".

According to him, the new planes would be operated on most popular routes and at airports having infrastructure constraints.

"It will allow us to bring higher passenger volumes with the same slots, therefore providing immediate benefits to the airports. These include, among others, more efficient operations, higher revenues from passenger service charges, and more airport retail purchases," he added.

Currently, AirAsia Group operates close to 1,000 flights per day to more than 120 destinations in 24 countries.

"We recorded a robust load factor of 85 per cent in the first quarter of 2016, up 8 percentage points from the same period last year, and we are confident of maintaining this momentum going forward," Mr Fernandes said.

Airbus President and CEO Fabrice Bregier said the additional order from AirAsia is another strong endorsement for the largest member of the company's single aisle family, which is now the clear market leader in the 200-plus seat category.

With Tuesday's order, the total number of A320 family aircraft ordered by AirAsia rise to 575.

To date, over 170 A320s have already been delivered to AirAsia. These are flying with its units in Malaysia, Thailand, India, Indonesia and the Philippines.

The A320neo family incorporates latest technologies including new generation engines and Sharklet wing tip devices, which together deliver more than 15 per cent in fuel savings from day one and 20 per cent by 2020 with further cabin innovations.