Aviation Tycoon Neeleman Eager Buyer for Proposed New Airbus Jet

(Bloomberg) -- Airline entrepreneur David Neeleman said he'd be at the front of the line for a proposed new longer-range Airbus SE jetliner if it's launched at next month's Paris Air Show, as widely expected.

“We'd definitely be interested in that airplane,” Neeleman said on Friday of the Airbus A321XLR, which wouldn't start deliveries until 2023. “I wish it was coming sooner," he said during an interview in Chicago.

The European planemaker has redesigned the fuel tank of the largest aircraft in its single-aisle family, the A321neo, to create a model that could cruise well past 4,000 nautical miles. Airbus has kept mum on its plans for the new jet, although its sales team has worked hard to sway influential buyers like Neeleman. His startups include JetBlue Airways, Canada's WestJet Airlines, Brazil's Azul SA and a new U.S. venture he's code-named Moxy.

Airbus's product strategy is expected to come into sharper focus amid the frenzied dealmaking that typically accompanies the International Air Transport Association's annual general meeting, which begins Saturday in Seoul.

By formally committing to move ahead with the XLR variant, Airbus could clip potential sales from an all-new airliner family contemplated by Boeing Co.

The Chicago-based planemaker has put its proposed twin-aisle jets on the backburner as executives focus on returning the 737 Max to flight following two fatal accidents. The offering is nicknamed the “797” by analysts and known within Boeing as “NMA,” for New Mid-Market Airplane.

Airlines like TAP Portugal, one of Neeleman's carriers, are eager for new aircraft that can efficiently cruise the seven-to-ten-hour journeys once commanded by Boeing's aging 757 and 767 models. The XLR could fly directly from Europe to American heartland cities like Chicago, helping airlines earn a profit during the winter months when travel wanes.

The Portuguese carrier has ordered Airbus's A321LR to fly to coastal cities in Brazil and the U.S., and will be the first airline to fly the plane across the Atlantic with service that begins Saturday between Newark and Porto. But while LR stands for long-range, the ocean crossings may prove easier with the XLR, which will be designed to cruise much farther than its predecessor.

Despite its name, the LR didn't hit its promised range targets, and wouldn't work on most Northern Atlantic flights from inland European cities like Paris, Neeleman said. He said TAP would “definitely convert” some of its orders for the plane to the more agile XLR.

“Airbus is always looking at advancing and enhancing our product line,” said Mary Anne Greczyn, an Airbus spokesperson. “The A321 still has a ton of potential.”

To contact the reporter on this story: Julie Johnsson in Chicago at jjohnsson@bloomberg.net

To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan Warren, Justin Bachman

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