AirAsia Chief Eyes $18 Billion Airbus Order

AirAsia hopes to place an $18 billion order for 200 Airbus jets, an official said Monday, as the airline's chief Tony Fernandes predicted his fleet could grow to around 500 by 2020.

A senior AirAsia official confirmed the airline may place the massive order for Airbus A320neo jets if the budget carrier's negotiations in Paris succeed.

The official, who spoke to AFP on condition of anonymity, said Fernandes and his group deputy Kamarudin Meranum will go to the Paris Airshow to broker the deal over the next two days, adding "we are looking at 200 jets."

Meanwhile Fernandes backed the airline to expand dramatically from its current size of 93 jets by 2020 as it tries to meet surging demand for air travel across Asia.

"It is really up to us how we take delivery but honestly 500 aircraft is very achievable," he told reporters after announcing a $200 million join-venture deal with Canadian firm CAE to run an airline training centre.

Fernandes said AirAsia has already placed an order of 175 A320 aircraft which will be fully delivered by 2015 but to meet its expansion plans in Indonesia, Philippines, Thailand and Vietnam it would need another 200 aircraft.

"We could be taking three planes a month by then (from 2015) which is 36 planes a year ... over five years that is another 200-odd planes," he said.

If AirAsia manages to conclude the Airbus A320neo deal, it will trump a provisional 180-plane order by low fare Indian airline IndiGo.

The Airbus A320neo, a new version of the A320 jets, costs $91.2 million according to the European planemaker's catalogue price.

Airbus says the jet, complete with new engines, saves 15 percent in fuel bills at a time when airlines are battling high fuel prices to remain profitable.

AirAsia's 93-strong fleet serves about 160 routes in Asia, making over 520 flights daily from hubs in Malaysia, Thailand, and Indonesia. It will take delivery of another seven jets this year.

Fernandes said the Asian Aviation Academy will train pilots, cabin crew, maintenance workers and ground personnel for AirAsia and other airlines in the Association of Southeast Asian Nations region.

Montreal-based CAE provides simulation and modelling technologies and integrated training for civil aviation industry and defence forces.

- By Agence France-Presse

Oops! Before you leave this page, don’t forget about your plan to go for your touring and travelling trip. We provide instant hotel booking facilities for you here. Just click the following banner and you’ll get your lowest accommodation rate of your choice!