AirAsia Mulls Double Airbus Jet Order but how much will it pay?

FARNBOROUGH, England – AirAsia (AIRA.KL) discusses the l & # 39; possible purchase of another 100 Airbus A321neo Jets as general manager of the company, the Malaysian entrepreneur Tony Fernandes, and Airbus embark on parallel negotiations for an expanded order for the largest A330neo aircraft, said the # 39; industry.

Fernandes could attend the Farnborough Air Show this week They will try to put an end to their relationships and will accept all or part of a complex set of orders for wide-body and narrow-body airliners , according to two sources.

If it were completed, it would put in Airbus coffers the low-cost carrier that juggles with existing orders and conducts a difficult negotiation on prices and the size of deposits, according to one of the sources.

Conversions or "attrition" between existing orders. AirAsia has ordered 600 aircraft, two-thirds of which are yet to be delivered.

Airbus declined to comment. AirAsia could not be contacted

Two sources said that AirAsia could place an order for up to 100 A321neo single-aisle aircraft worth $ 13 billion at list price, as reported by Bloomberg News.

A third source suggested that it might involve upgrading from smaller models, which may trigger other commands. None of the sources, who are aware of the case, have agreed to be quoted on confidential interviews.

The range of options underscores the complexity of AirAsia's portfolio as it expands. But despite the attractiveness of an order of 100 aircraft, all eyes are turned to AirAsia to confirm the confirmation of the A330neo, as there is no problem selling single aisles more small.

AirAsia, the largest budget carrier in Asia, sends mixed signals. It's about knowing it will confirm its previous deal for 66 A330neo upgraded – seen from afar by Boeing Co (BA.N), which hopes to replace the order with its 787 Dreamliner.

Delegates estimate that Airbus needs one Indeed, losing the biggest buyer of the A330neo could push bankers to tighten their terms of funding the same plane to d & # 39; other airlines, and thus hurt sales.

However, sources said that relations between the companies had cooled as a result of recent changes in Airbus management.

An AirAsia order would signal links between Airbus and its large Asian customers have improved, although Airbus has signaled a desire to protect profit margins.

The financiers speculate that AirAsia will request discounts of up to 60% for AeroNe and two thirds for the A330neo. The standard industry rebates are closer to 50%.

Depending on the negotiations, the amount of money remitted on the first day next to any new AirAsia order could be small.

"This agreement is worthless in terms of financial commitment.", Said the first source to Reuters

– Reuters