AirAsia starts pressure on Airbus at the expense of the A330neo

SINGAPORE (Reuters) – AirAsia X Bhd ( AIRA.KL ) shall ensure the price, performance, engines and payment terms for the Airbus ( AIR.PA ) A330neo are just before he "finally confirms" his command for 66 jets, his group co-leader said Tuesday.

AirAsia X, the long-haul carrier of low carrier -cost Malaysian AirAsia Group Bhd ( AIRA .KL ), is the largest customer of the A330neo, which is fighting for its sales compared to rival Boeing 787 ( BA.N ).

AirAsia X placed a firm order for the fuel-efficient A330neo wide jet to replace its older first-generation A330s, but postponed delivery dates.

He spoke to Boeing about the purchase of the 787-10 jet as an alternative and is expected to make a decision later this year, a person familiar with the talks told Reuters.

The CEO of the co-company, Tony Fernandes, said Tuesday on Twitter that he was visiting Airbus at his Toulouse headquarters to discuss the A330neo and the smaller A321neo.

"We ordered the 330 but to confirm it finally we have to make sure the price is right.The performance is good.The engine is right.DPP (pre-delivery payments) is right." He said. "And the performance of the 330 251 tonnes is just – if it is right, it is the plane we dreamed and fought for, and we can order from it. Or else. "

Pre-delivery payments are made to manufacturers before production and are sometimes financed by loans. It remains to be seen how far AirAsia has already paid advances.

This remark is the latest in a series of provocative comments from Fernandes apparently intended to intensify competition between Boeing and Airbus and to take advantage of AirAsia's position as an anchor customer for l & # 39; A330neo.

After a series of losses on Boeing's 787, several analysts said that the future of the A330neo would be under surveillance if AirAsia abandoned its order.

However, with this month's Farnborough Airshow approaching, Airbus should do everything in its power to try to take at least one more order in order to restore some momentum to the program.

With only 214 A330neos on order – including 66 for AirAsia X and another 28 for IranAir that will likely not be delivered due to US sanctions – the program needs a new boost to mop up more than 15 slots from unsold production an.

The 251-ton version, which could fly non-stop from Kuala Lumpur to London, is designed to provide more reach by improving fuel capacity but will not be available for delivery until 2020.

Fernandes also said Tuesday that he believed that the A321neo, a large narrow-body jet, was a "big plane" and that he had hopes to order more from him. . He is also the CEO of AirAsia, which has 100 A321neos on order.