Tag: NEO (Page 14 of 15)

IndiGo Airlines Considering Wide-Body Aircraft From Airbus, Boeing

October 15, 2018 / WIL BALDWIN

ABU DHABI (Reuters) – Indian airline IndiGo on Sunday said wide-bodied aircraft are an “aspiration” and talks with manufacturers are ongoing but there is no firm timeline amid difficult market conditions in the Indian market.

The budget airline, owned by InterGlobe Aviation <INGL.NS>, faces fierce competition in the very price sensitive Indian market where carriers are struggling to remain profitable despite filling 90 percent of their seats and rising demand.

IndiGo recently reported a steep fall in quarterly profit due to higher fuel prices and continued pressure on yields reflecting price competition.

“Wide-bodied aircraft are an aspiration, we have talked to manufacturers. We are looking at A330neo and Boeing 787,” Chief Commercial Officer Willy Boulter told Reuters in Abu Dhabi, declining to go into details.

IndiGo, India’s biggest low-cost carrier by market share, announced direct flights, starting Monday from two south Indian cities, Kochi and Kozhikode to Abu Dhabi, the capital of the United Arab Emirates.

In the Gulf, the airline has direct flights to Dubai and Sharjah in the UAE as well as to Doha and Muscat. Flights to Kuwait will be launched this week, to Saudi Arabia in November and Hong Kong in December, Boulter said.

In early 2019, IndiGo plans to start flights to London with an Airbus A321 aircraft stopping at a mid-point that is yet to be selected, he said. Other international destinations for launch include Kuala Lumpur and Phuket, Thailand, in November.

IndiGo is working closely with the Indian government to take advantage of opportunities under bilateral agreements where travel rights will become available for additional markets, he said, adding that IndiGo has applied for rights to Europe and Asia.

“We are confident of bilaterals being expanded further,” he said.

IndiGo has a fleet of 192 aircraft and more than 400 aircraft on order. The first batch of Airbus A321neo aircraft with 222 seats will be delivered next month, he said.

(Reporting By Stanley Carvalho)

Interjet To Reduce Sukhoi Superjet Fleet Size

September 20, 2018 / WIL BALDWIN

Interjet Airlines of Mexico is reportedly planning on phasing out some of its Sukhoi Superjet 100’s to make room for an additional 20 Airbus A320-neo aircraft. The plan is part of a new 3-year effort to restructure its fleet. The airline currently has 22 Sukhoi Superjet 100 aircraft in its fleet, with one of those units parked in storage. Interjet has 8 more of the aircraft on order, but will most likely convert those aircraft orders to the Superjet 130NG currently in development.

The 20 additional A320-neo’s its adding to its orderbook will be delivered over the course of the next five years. Interjet states that the fleet restructuring plan will bring it greater opportunities to be more competitive, further reducing its operational costs and enhance its profitability. The airline is looking to add more international business as it continues to grow. Interjet recently took delivery of its seventh Airbus A321-neo aircraft on September 9, 2018.

Interjet has experienced some operational challenges with its Sukhoi Superjet 100’s since adding the aircraft to its fleet in 2013. Issues with the airplanes stabiliser forced it to ground half of its fleet in early 2017, and some of the aircraft were grounded after being used for spare parts. Interjet plans to continue differentiating itself from other low-cost carriers, with free checked bags and complimentary snacks onboard. The airline also has continued to pursue global alliances with Lufthansa, Japan Airlines, EVA Air, and Emirates.

Lufthansa Suffering From A320neo Engine Vibration Issues

September 7, 2018 / WIL BALDWIN

Lufthansa has reportedly been suffering from a rash of Airbus A320neo engine vibration issues. The issue centers around aircraft using the Pratt & Whitney PW1100G geared turbofan engine, and involves ever increasing engine vibration on aircraft with as few as 1,000 flight hours, or less.

The vibrations increase in intense over time, and result in the engines having to be changed out. Pilots are alerted to the situation via an engine vibration warning in the cockpit, and the issue occurs when running at higher power during take-off and climb. The vibrations reportedly subside as the engine power settings are reduced while at cruise altitude.

The FAA is planning to release a publication on September 7 detailing manufacturing defects in some of the PW1100G-JM low-pressure turbine disks. The report specifies that several first and third stage LPT disks were delivered before the lot ended up being rejected due to material inclusion. Some of the disks may have been installed in engines that were delivered without being discovered during inspections.

Norwegian Air To Possibly Sell Its Airbus Aircraft

September 4, 2018 / WIL BALDWIN

By Ole Petter Skonnord

OSLO (Reuters) – Norwegian Air (NWC.OL) expects to announce further aircraft sales by the end of the year including used Boeing 737s as well as some of the new Airbus planes it has on order to reduce it debt commitments.

Norwegian Air has committed to acquire 210 new aircraft from Boeing and Airbus by 2020.

“We have 90 neos (A320neo) from Airbus on order. The Airbus 320neos are for all practical purposes for sale. We have started a process where we will try to find a new home for those aircraft,” Chief Financial Officer Geir Karlsen told an investor presentation on Tuesday.

“The problem is not to sell them … but to get the price we want … Hopefully by the end of the year we should be able to disclose news on a transaction,” Karlsen said.

By the end of the year, Karlsen estimated Norwegian Air’s fleet of more than 150 planes to rise to 164-165. Taken into account planned aircraft sales, he said he expected a net increase in the fleet of 30-40 new Boeing 737 MAX aircraft by 2022-2023.

Of its Airbus aircraft on order, 33 of them are Airbus 321LR(long range) neos, which could be kept, depending on traffic development in Argentina.

“We are pretty excited about what we are doing in Argentina and depending on how that goes we will decide on the solution on the Airbus 321 and will possibly move some of them to Argentina,” Karlsen said.

ARGENTINA LAUNCH

He said Norwegian Air started to sell tickets in Argentina on Tuesday on two routes linking Buenos Aires with Cordoba and Mendoza.

The first flight is planned in mid-October and the plan is to have 4 aircraft in Argentina by year-end.

“We will look at ticket sales before we decide what to do,” Karlsen said.

Last week Norwegian Air announced the sale of six used aircraft and said as many as 140 planes could be sold over time as a part of the renewal of its fleet and to help reduce debt.

Karlsen said sales of used aircraft would continue.

Such sales would “probably to be sold plus/minus book value as it looks now. Hopefully a little bit above,” Karlsen said.

(Reporting by Ole Petter Skonnord; editing by Jason Neely)

Image from www.norwegian.com

Hawaiian Airlines’ Fleet Transition Back On Track

July 23, 2018 / WIL BALDWIN

Five years ago, Hawaiian Holdings (NASDAQ: HA) ordered 16 medium-range Airbus(NASDAQOTH: EADSY) A321neos. It later agreed to lease two more A321neos, with all 18 aircraft scheduled for delivery between 2017 and 2020.

Hawaiian Airlines received its first two A321neos from Airbus in late 2017. Entering 2018, the carrier expected to have eight A321neos by the middle of the year, allowing it to replace its aging Boeing 767s and increase service during the summer peak season. However, a new round of production miscues at engine supplier Pratt & Whitney delayed this year’s deliveries.

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Hawaiian Airlines’ Fleet Transition

AirAsia X Still Has Not Confirmed Airbus A330neo Order

July 3, 2018 / WIL BALDWIN

SINGAPORE (Reuters) – AirAsia X Bhd (AIRA.KL) needs to ensure the price, performance and engines of the Airbus SE (AIR.PA) A330neo are right before it will “finally confirm” its order for 66 of the jets, its co-group chief executive said on Tuesday.

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

AirAsia X has a firm order for the fuel-efficient A330neo widebody jets to replace its older first-generation A330s but it has been pushing back the delivery dates.

It has been talking to Boeing about buying the 787-10 jet as an alternative and is likely to make a decision later this year, a person familiar with the discussions previously told Reuters.

The airline’s CEO, Tony Fernandes, on Tuesday said on Twitter that he was visiting Airbus at its Toulouse headquarters to discuss the A330neo as well as the smaller A321neo.

“We have ordered the 330 but to finally confirm it we must make sure price is right. Performance is right. Engine is right,” he said. “And performance of the 330 251 ton is right. If right (it is) the plane we dreamt of and fought for and then we can order more. Or else.”

The 251 ton version, which could fly non-stop from Kuala Lumpur to London, is a heavier version of the jet and has more range but will not be available for delivery until 2020.

Fernandes added that he believed the A321neo, a large narrowbody jet, was a “great plane” and raised the prospect of ordering more. He is also the CEO of AirAsia, which has 100 A321neos on order.

(Reporting by Jamie FreedEditing by Christopher Cushing)

Bamboo Airways To Buy 20 Boeing 787-9 Dreamliners

June 25, 2018 / WIL BALDWIN

(Reuters) – Boeing Co (BA.N) said on Monday entered into an agreement to sell 20 of its widebody long-haul aircraft to Vietnamese startup Bamboo Airways in a $5.6 billion deal at current list prices.

As part of the deal, which is yet to be finalized, FLC Group-owned (FLC.HM) Bamboo Airways has made a deposit in mid-June to reserve the 787-9 Dreamliners, whose delivery is likely to begin from April 2020, through 2021, Boeing said.

Bamboo Airways plans to begin commercial operations next year out of Hanoi.

FLC Group has also signed an initial agreement with Airbus SE (AIR.PA) in March for up to 24 A321neo aircraft.

(Reporting by Arunima Banerjee in Bengaluru)

Airbus Weighing New Long-Range A321

June 18, 2018 / WIL BALDWIN

PARIS (Reuters) – Airbus is considering adding extra endurance to the longest-range version of its A321 passenger jet in a further effort to pre-empt a potential new mid-market jet being studied by U.S. rival Boeing, industry sources said.

A new version called the A321XLR is the latest study on the drawing board in a battle of wits as both jetmakers battle for supremacy in the 200-270-seat segment, valued by analysts at hundreds of billion of dollars over 20 years.

The proposed new A321XLR would carry extra fuel and expand the range of the A321LR aircraft, which recently claimed a long-distance record for single-aisle jets in testing, the sources said, asking not to be named as the idea remains confidential.

It is expected to be aimed at North American carriers, whose ordering decisions could be decisive as Boeing weighs up whether to go ahead with plans for a new ‘middle-of-the-market’ aircraft.

“We do not comment on our product policy,” an Airbus spokesman said.

Noting that Airbus had 80 percent of sales in the A321 category, the spokesman added, “We are under no pressure”.

Airbus has been heavily outselling Boeing in the lower end of the 200-270-seat segment with the single-aisle A321, while Boeing has been dominating at the upper end with strong sales of the 787 Dreamliner at the expense of the Airbus A330neo.

This is the space into which Boeing proposes launching its 220-270 seat mid-market jet, a hybrid with the twin-aisle cabin of a wide-body jet but the smaller cargo space of a single-aisle plane thanks to a novel shape designed to fly more efficiently.

Airbus has been toying with several proposals to extend the A321’s advantage and try to limit the impact of Boeing’s new plane or even prompt its rival to abandon the idea.

Airbus says the A321LR, due to enter service this year, will have a maximum range of to 4,000 nautical miles (7,400 km). Boeing says the 737 MAX 10, the largest member of its competing 737 family, has a range of 3,300 nm.

JUGGLING RISKS

In a surprise move, Airbus previously halted work on a study dubbed A320neo-plus, Reuters reported in April.

The advanced blueprint would have featured increased fuel capacity, a longer fuselage and improvements to the A321’s wing.

A longer-term project, code-named A320neo-plus-plus,” with an all-new carbon-fibre wing, has also been put to one side.

By halting the studies, Airbus aims to force Boeing to show its hand on the middle-market segment before risking its own capital with a response, people familiar with the decision said.

But others say doing nothing is not without risk since failing to defend the profitable A321 could encourage Boeing to launch its newer jet. “If you do it, you have to move quickly,” an industry source said, referring to plans to improve the A321.

The A321XLR – with more fuel capacity but no extra seats or aerodynamic redesign – is a compromise bet that Airbus hopes will fend off Boeing for the smallest upfront investment.

In an interview last week, Boeing’s sales chief said it would take the time needed to decide whether to launch its new jet, rejecting suggestions that it is dragging its feet.

“We are doing our due diligence,” senior vice-president Ihssane Mounir told Reuters.

The jet is widely expected to be developed in two versions.

Boeing is looking at a product that is “a little bigger than an A321 but goes a lot further” and “about the size of the A330 but has a lot better efficiency,” he said.

Speaking to Reuters earlier this month, Airbus President Guillaume Faury deflected questions about A321 revamp plans.

“Airbus like any company has different options and is looking at the future,” he said.

(Reporting by Tim Hepher; Editing by Richard Lough/Keith Weir)

Airbus Losing Ground In United Jet Bid

May 18, 2018 / WIL BALDWIN

By Tim Hepher and Alana Wise

PARIS/NEW YORK (Reuters) – Airbus’s hopes of winning an immediate respite from slow sales of its A330neo jetliner with an order from United Airlines are dwindling, leaving a gap in future production weeks before it is due to enter service, industry sources said on Friday.

Airbus has been competing with Boeing to replace all or part of a fleet of some 50 Boeing 767s at United Airlines (UAL.N), people familiar with the discussions say.

Others said Airbus had made an unsolicited offer to try to head off plans by United to use rights to buy more Boeing 787s.

It’s the latest twist in one of the fiercest recent jet market battles, pitting Boeing’s 787 against the latest type of A330, with Boeing so far holding the upper hand.

“Airbus doesn’t have United,” one person familiar with the matter told Reuters, though others did not exclude a chance to compete for a second tranche of business later.

Sources say Boeing has an advantage in any competition because United already flies its 787 and has options for more.

Airbus (AIR.PA), Boeing (BA.N) and United (UAL.N) declined comment.

Airbus is keen to clinch a deal after losing to the 787 at two other U.S. carriers.

It also hopes to defend planned production rates, which have only just been lowered due to weak demand.

Sources said more than 15 A330 output slots remain unfilled in next year’s schedule, heightening pressure to win deals.

Airbus has sold 214 A330neos to around 13 customers led by AirAsia (AIRA.KL), which has been giving mixed signals over whether it plans to take the jets or switch to Boeing.

AirAsia Group boss Tony Fernandes said this week the A330neo was still the “favourite choice” but he was delaying a final decision until he saw how the jet performed.

America’s withdrawal from the Iran nuclear accord threatens the sale of 28 A330neos to IranAir.

Another reason Airbus wants to add a new marquee customer is that it would make it easier for airlines to finance A330neo purchases, and potentially hold back the tide of 787 sales under a hard-charging new Boeing leadership, financial sources said.

Banks add risk factors and toughen the terms when backing thinly sold jets and the risk is that the more popular 787 could become cheaper to finance, even though the price of an A330neo is lower after allowing for market discounts.

Airbus has said it is confident about long-term demand and is talking to several airlines about the 310-seat plane.

“It’s a big segment and we think we have the right airplane at the right time,” Airbus Americas Chairman Jeff Knittel said.

Hi Fly Airbus A380: Boom or Bust?

May 12, 2018 / WIL BALDWIN

Lisbon, Portugal based charter airline Hi Fly has announced that it plans to acquire an Airbus A380. The carrier plans to configured the aircraft with 471 seats, with 12 in first class, 60 in business class, and 399 in economy class. The A380 is scheduled to begin flights with the airline in mid 2018, and is a leased aircraft that was returned by Singapore Airlines.

Hi Fly will become the fourth airline based in Europe to operate the aircraft along with Air France, British Airways, and Lufthansa, but will be the first as a dedicated charter airline. The A380 has seen slow sales, as the logistics of continuing to be able to fill 550 plus seats on a consistent basis has been a challenge for most operators. One has to wonder how a charter airline will be able to operate the aircraft with not only enough paying passengers, but also enough of a schedule frequency to be able to cover the acquisition and operational costs?

Hi Fly currently operates a fleet of 8 Airbus aircraft, including 1 A321-200, 3 A330-200’s, and 4 A340’s. The carrier also has 12 A330’s on order, with 2 A330-200’s also scheduled to enter service starting this June. The other 10 are A330-900neo’s, as well as plans for a second A380. This seems like a huge increase in capacity for the carrier, but they also provide “for hire” services to other airlines. If another airline is unable to operate a flight due to maintenance or scheduling issues, they can call Hi Fly to operate that flight for them. Only time will tell if the increase in the carrier’s revenues can cover their costs.

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