By David Pearson and Gaurav Raghuvanshi
PARIS--Airbus said Thursday it has received an order for 100
single-aisle Airbus A320 aircraft from AirAsia Bhd. (5099.KU),
Asia's largest budget airline that is expanding its fleet to tap
into the robust growth in air travel in the region.
The order had been widely anticipated in recent months.
Airbus and AirAsia didn't disclose the price at which the jets
will be sold. On the basis of list prices, however, the contract is
potentially worth around $9.37 billion. However, airlines are
typically able to extract discounts of up to 30% on list prices
when purchasing aircraft.
The order comprises 36 of Airbus's current generation A320
single aisle jets and 64 A320neos, the re-engined version of the
jet that the manufacturer claims will consume less fuel. The
A320neo is under development and is expected to enter into service
with customer airlines in 2016.
AirAsia is Airbus's biggest customer, having ordered a total of
475 aircraft to date, comprising 264 A320neos and 211 current
generation models of the narrow-bodied jets. It already operates
100 aircraft.
The latest order was announced during a visit by British Prime
Minister David Cameron to the Airbus wing manufacturing facility at
Broughton in the U.K. "This Government will continue to back UK
aerospace; cutting business taxes, investing in exports and working
in partnership with the industry to ensure it is fully equipped to
compete and thrive in the global race," Mr. Cameron said.
Airbus said the latest order from AirAsia will sustain 1,500
jobs in the UK as well as a further 7,500 in the extended supply
chain.
Last year, AirAsia ordered 200 jets from Toulouse-based Airbus,
a unit of European Aeronautic Defence and Space Co. EADS N.V.
(EAD.FR).
Asian budget airlines have been expanding at a fast pace,
betting on steady growth in air traffic in Southeast Asia, where a
population of about 600 million remains underserved by air
links.
AirAsia, Southeast Asia's largest budget airline by fleet size,
reported a 3.6% rise in fiscal third-quarter net profit last month
and said it expects a better performance in the fourth quarter. Net
profit in the quarter ended Sept. 30 was 157.8 million ringgit
($52.1 million) compared with MYR152.3 million in the year-earlier
period.
The company plans to focus on its core markets Malaysia,
Indonesia and Thailand in the near term, while it also invests in
Japan and Philippines.
-Write to David Pearson and Gaurav Raghuvanshi at
david.pearson@dowjones.com and gaurav.raghuvanshi@dowjones.com
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