Airbus re-sells six unwanted jets built for AirAsia

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In this news, we discuss the Airbus re-sells six unwanted jets built for AirAsia.

PARIS (Reuters) – Airbus has found buyers for six A320neo family jets rejected by one of its main customers, Malaysia’s AirAsia, as it makes up for a surplus left by the coronavirus crisis, sources said. sector.

Unwanted jets have become an emblem of the problems induced by a pandemic in the aerospace industry which have added to a cold in the relations between two of its main players.

Tensions became unusually public when Airbus in April issued tenders for six jets that AirAsia had not taken delivery of.

He has now found housing for the six, the last of which is delivered this month, a European industry source told Reuters. Airbus did not provide any comments.

Airbus has continuously increased its deliveries by signing agreements with airlines to reschedule deliveries or stock jets.

He said last month that he had reduced an overhang he had not been able to deliver during the crisis from 10 units to 135 jets. AirAsia’s order redeployment is expected to further reduce the surplus, with deliveries peaking in production in November.

Airbus is seeing strong demand, relative to the rest of the struggling industry, for its A321neo aircraft, and the aircraft has generally retained its value, the European source said. He is sticking to plans to increase the production of single-aisle jets.

The A321neo competes with the two larger versions of the Boeing 737 MAX, which was approved last week for entry into service after a 20-month grounding following two crashes.

AIRCRAFT VALUES

Boeing is expected to resell dozens of 737 MAXs that buyers canceled during the grounding, which could lower prices.

According to UK-based consulting firm IBA Group, all planes lost value during the COVID-19 crisis, but the A321neo is trading around 5% below its inherent value while the MAX is 10% below – also injured by the recent grounding.

Doubts remain, however, about the demand for a bigger Airbus, the A330neo, whose biggest customer, AirAsia’s long-haul unit, Air Asia X, is seeking new funding to survive.

AirAsia announced in April that it would stop taking deliveries of all Airbus planes this year and review remaining orders.

The move heightened concerns about demand in Southeast Asia, which was already struggling with overcapacity before the crisis.

AirAsia’s relationship with Airbus was further clouded when it was embroiled in an Airbus corruption case before being cleared by local investigators, industry sources said.

AirAsia co-founders have denied any wrongdoing in a sports sponsorship deal cited in a larger Airbus corruption deal with prosecutors in January. The European source said AirAsia remains an important partner for Airbus.

Tim Hepher report; edited by Louise Heavens, Elaine Hardcastle and Kevin Liffey

Original © Thomson Reuters

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