AirAsia heaps pressure on Airbus over A330neo order

A330neo

SINGAPORE (Reuters) – AirAsia X Bhd needs to ensure the price, performance, engines and payment terms for the Airbus  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, is the largest customer for the A330neo, which is struggling for sales relative to the rival Boeing 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 co-group CEO, Tony Fernandes, said on Twitter on Tuesday that he was visiting Airbus at its Toulouse headquarters to discuss the A330neo and 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. PDP (pre-delivery payments) is right.” he said. “And performance of the 330 251-tonne is right. If right, (it is) the plane we dreamt of and fought for and then we can order more. Or else.”

Pre-delivery payments are made to manufacturers in the run-up to production and are sometimes financed using loans. It remains unclear to what extent AirAsia has yet paid advances.

The remark is the latest in a series of teasing comments from Fernandes apparently designed to heighten competition between Boeing and Airbus and to take advantage of AirAsia’s position as an anchor customer for the A330neo.

Reuters