Malaysia’s AirAsia Group reaches take care of Airbus to restructure airplane orders

  • Will swap 13 A320neo orders to bigger A321neos
  • Has 362 A321neos on order, with supply by 2035
  • Airline had halted deliveries throughout pandemic

KUALA LUMPUR, Oct 6 (Reuters) – Malaysia’s AirAsia Group Bhd (AIRA.KL) has reached a take care of Airbus SE (AIR.PA) to restructure an order for 362 narrowbody planes together with switching 13 A320neos to the bigger A321neo mannequin, the airline mentioned on Wednesday.

Deliveries of the 362 A321neos at the moment are deliberate by 2035, the airline mentioned, with out offering particulars of earlier plans.

Reuters final month reported Airbus had agreed to chop costs or reschedule supply to salvage a contract value tens of billions of {dollars} with its largest Asian buyer, in accordance with trade sources. learn extra

AirAsia acquired its first A321neo in November 2019 and at present has 4 of the planes in service after halting deliveries throughout the pandemic, which has led to a plunge in journey throughout Southeast Asia.

Airbus offered six A321neos that had been constructed for AirAsia final 12 months, in accordance with trade sources.

Airbus Chief Commercial Officer Christian Scherer mentioned in an announcement that the take care of AirAsia introduced on Wednesday was an instance of how the planemaker had labored with prospects to seek out options to adapt to the affect of the pandemic.

AirAsia Group President Bo Lingam mentioned the airline had completely reviewed its community and fleet technique to make sure flying on the most well-liked and worthwhile routes because it ready for journey to renew.

“Our business model is robust, and there is a lot of pent-up demand,” he mentioned. “We are confident that our airlines will be able to rebound and recover strongly as soon as travel restrictions are lifted.”

AirAsia mentioned on Tuesday it had acquired approval from Danajamin Nasional Bhd for a mortgage of as much as 500 million ringgit ($119.67 million) with an 80% authorities assure.

($1 = 4.1780 ringgit)

Reporting by Liz Lee in Kuala Lumpur and Jamie Freed in Sydney; Editing by Shri Navaratnam

A general view of AirAsia headquarters, amid the coronavirus disease (COVID-19) outbreak in Sepang, Malaysia October 6, 2020. REUTERS/Lim Huey Teng/File Photo