AirAsia Confirms Massive $9.4 Billion Order For 100 A320 Aircraft

[jubilee1919]

Airbus confirms $9.4 billion AirAsia order

BROUGHTON, Wales | Thu Dec 13, 2012 10:41am EST

(Reuters) - European planemaker Airbus (EAD.PA) said on Thursday that Malaysian group AirAsia (AIRA.KL) was the customer behind a previously announced order for 100 A320 aircraft worth around $9.4 billion at list prices.

The deal, which provides AirAsia with an additional 64 A320neo and 36 A320ceo aircraft, was formally unveiled at Airbus's wing assembly plant in Broughton, Wales, in the presence of British Prime Minister David Cameron.

The contract will safeguard 1,500 Airbus jobs in Britain and 7,500 in the group's wider supply chain, Cameron's office said.

"This is excellent news and a tremendous boost for the workforce and for UK manufacturing," Cameron said in a statement.

"Today's announcement demonstrates the strength of the UK aerospace sector and the important role it plays in growing and rebalancing our economy."

Alongside AirAsia's chief executive Tony Fernandes, Cameron toured the Broughton plant, which employs over 5,000 people and will be making the wings of the aircraft.

Other major parts are made in France, Germany and Spain.

The announcement comes a day after data showed that the number of people in work in Britain hit a record high in November, offering some relief to a government struggling with unpopular austerity measures and a sluggish economy.

The contract also reaffirms AirAsia, Asia's largest low-cost carrier, as the world's largest A320 customer by number of aircraft ordered.

"We have just bought 100 planes which makes a total of 475. To meet the amazing demand in Asia," Fernandes wrote on Twitter.

AirAsia placed a record 200-plane Airbus order in 2011.

Fresh talks between AirAsia and Airbus, initially for 50 jets, were first reported by Reuters in May.

But the European planemaker's chances for a deal were thrown into doubt when Fernandes held surprise talks with Canadian planemaker Bombardier (BBDb.TO) at Silverstone in July, on the eve of the British Grand Prix.

In September, industry sources said AirAsia and Airbus were closing in on an expanded deal for 100 aircraft.

Economic growth, urbanization and rising disposable incomes are spurring rapid passenger growth among Asian low-cost carriers, helping to shield Airbus and its rival Boeing from the malaise gripping developed economies.

http://www.reuters.com/article/2012/12/13/us-airbus-order-britain-airasia-idUSBRE8BC0SL20121213

This will be a tremendous boost to the European economy.

 

[chonburifc]

sia can go give dog fuck aka hor gau kan.
beginning of the end!

 

[laksaboy]

Might not be such a good idea if QPR gets relegated.

 

[singveld]

m&d are so stupid.
Why not buy from boeing?

who is going to pay for american army? If US gov does not tax their companies?

without american army, who is going to defeat japan in ww2?

south east asia will be taken over by vietnam in 70 and in future malaysia will be taken over by china in next 50 years.

they think EU army can help them? EU army is a joke.

 

[chuckyworld]

Think 9 months back, Spainair was trying to get rid of their airbus 320 around 30 planes, their are other trying to sell their Airbus planes too....:*:

 

[Alamaking]

If I'm not wrong, airbus planes are lighter and have a better fuel consumption, thus their plane can travel longer route than Boeing. It doesn't matter if its euro or us lah...

 

[tualingong]

a320 is for short haul flights lah. at most to shanghai or beijing.

cannot reach us or europe.

looks like air asia has plans to dominate asia.

sia better wake up.

 

[Prometheus888]

sounds like scoot is headed for a tail spin...

an epic failure already.....

what do you expect when you get a bunch of clowns from the SAF running all the business corporations and running this country....

 

[jubilee1919]

m&d are so stupid.
Why not buy from boeing?

who is going to pay for american army? If US gov does not tax their companies?

without american army, who is going to defeat japan in ww2?

south east asia will be taken over by vietnam in 70 and in future malaysia will be taken over by china in next 50 years.

they think EU army can help them? EU army is a joke.

Your comments are so far off the mark and make no sense to anyone reading it. You must have taken some Meth that is why!!

 

[MBSSLUTS]

See QPR playing in Championship next season.:oIo:

 

[Cestbon]

A320 plane range about 6000km or 6 hour flight.
It good enough for small plane.
Reason AA buy A320 is they use only one model. Maintenance will be easy and cheaper.
Imagine if have 10 model plane how many part, worker need to be train, also tool...................
Only SIA stupid enough buying all type of plane.

 

[jubilee1919]

A320 plane range about 6000km or 6 hour flight.
It good enough for small plane.
Reason AA buy A320 is they use only one model. Maintenance will be easy and cheaper.
Imagine if have 10 model plane how many part, worker need to be train, also tool...................
Only SIA stupid enough buying all type of plane.

You are right about their decision. To add, need different GSE's (ground support equipment), toolings, pilots that qualify for aircraft type and etc. There are more but that is another story.

 

[syed putra]

m&d are so stupid.
Why not buy from boeing?

who is going to pay for american army? If US gov does not tax their companies?

without american army, who is going to defeat japan in ww2?

south east asia will be taken over by vietnam in 70 and in future malaysia will be taken over by china in next 50 years.

they think EU army can help them? EU army is a joke.

When it comes to boeing, you should leave that to Lion Air of indonesia.
They have placed and order for 200 aircraft and have announced a malaysian subsidiary for flights between Indonesia and malaysia.

 

[Cestbon]

I like your signature. Very good meaning. Clap clap...

 

[TracyTan866]

Air Asia is causing a dent to SIA...will SCOOT help to mitigate the effects of Air Asia' s competition?

 

[jubilee1919]

Analysts surprised by AirAsia’s fleet expansion plan

By WONG WEI-SHEN
Saturday November 24, 2012

PETALING JAYA: Low-cost carrier AirAsia Bhd is coming out with gloves off as the airline fights to retain market share in Malaysia and expand in anticipation of the open skies policy in 2015.

The open skies policy would allow travellers choice where travelling within Asean is concerned.

However, analysts noted that airlines operating in Asean would have to up their ante to fight for market space. AirAsia is among those gearing up their capacity to compete against other airlines.

Analysts were surprised by AirAsia's commitment to take delivery of 36 planes next year, 15 more than what it took up this year. The expansion represents a group fleet expansion of 30%.

“AirAsia unveiled its pre-emptive attack on Lion Air's plans to enter Malaysia in mid-March 2013 by starting Malindo Airways,” CIMB Investment Bank Bhd analyst Raymond Yap said.

During a quarterly analyst conference call in conjunction with the release of AirAsia's financial results for the third quarter ended Sept 30, the company said the local operations would take up 10 planes while the Thai and Indonesian operations would take nine planes each. AirAsia Japan would take five plane deliveries while the remaining three planes will go to AirAsia Philippines.

Yap said the expansion for the local operations was double the previous guidance for a five-plane expansion.

The expansion for next year would be the highest ever in AirAsia's history in terms of the number of aircrafts. “While it is a strategic long-term move against Lion Air's regional ambitions, it could cause yields to deflate faster than we had anticipated,” Yap said.

Of the 36 planes to be delivered, 23 would be from Airbus. Besides these orders, the company has also decided to enter the market for 13 additional leases from third-party lessors on five-year terms.

But analysts noted that the aggressive pre-emptive strike against Lion Air could cause negative returns in the near-term.

Yap has cut AirAsia's earnings per share forecasts for 2013 and 2014 to factor in this aggressive stance.

“We cut out core EPS forecasts by 14% for 2012,” he said. However, Yap has retained target price-earnings multiples of nine times with the target price cut to RM3 from RM3.50 previously.

Credit Suisse Group AG analyst Annuar Aziz said in a previous report that the accelerated roll out of aircraft locally was a good defensive measure against the start of Malindo Airways' operations here in March next year.

He expects AirAsia to be able to endure the challenge.

On the onslaught of the open skies policy, AirAsia had announced that it would order 100 more aircraft to prepare itself. Malaysia Airlines was also preparing strategies to stay relevant in the current and near-future environment.

http://biz.thestar.com.my/news/story.asp?file=/2012/11/24/business/12362880&sec=business

Somewhat surprising decision to purchase additional 100 A320's given the current economic climate in Asia. AirAsia is taking a big gamble and may lose their shirts and pants if the expected increase in passenger traffic failed to materialise.

 

[GOD IS MY DOG]

what they say is true....................when a lamp is about to go out, it gives its brightest light.............


when recession then depression hits..............AirAsia will fold under its immense debt...............

all companies expanding using too much debt sure die one................


even a huge casino company like Sands almost went belly up a few years ago becoz of debt.............

 

[syed putra]

what they say is true....................when a lamp is about to go out, it gives its brightest light.............


when recession then depression hits..............AirAsia will fold under its immense debt...............

all companies expanding using too much debt sure die one................


even a huge casino company like Sands almost went belly up a few years ago becoz of debt.............

Well managed low cost carriers in europe are booming despite the recession. And East Asia has a higher population than Europe. Even in the US, Skywest is popular and regarded as one of the top airlines despite it being lo cost.

 

[syed putra]

Somewhat surprising decision to purchase additional 100 A320's given the current economic climate in Asia. AirAsia is taking a big gamble and may lose their shirts and pants if the expected increase in passenger traffic failed to materialise.[/I]

I am a big fan of airasia. I started using their aircraft when they were flying the old leased B737. The flight attendent did not bother to inform us to put the seat upright because half the seats were broken and were leaning backwards.
There is a huge pent up demand for low cost carriers, not only in ASEAN, but the whole of asia. China is a market not yet tapped into. Vietnam has almost 100 million people. Put bangaldesh, India, korea and japan, that is easily another 500 aircraft required.

The price of fuel at USD100-130/bbl will hold as it encourages oil companies to invest in extracting oil. And above USD150, bio fuel becomes an option as it encourages farmers to convert their farm produce from food to fuel.

 

[Narong Wongwan]

sia can go give dog fuck aka hor gau kan.
beginning of the end!

SIA has to innovate.......offer free fucks with SIA girls to passengers