AirAsia X to buy 50 A330 Neo planes

Airbus has secured AirAsia X as the launch partner for its new long-range passenger jet, with Asia's largest low-cost airline agreeing to buy 50 A330 Neo aircraft worth nearly $14bn at list price.

The Toulouse-based aeroplane maker announced a long-awaited revamp of its wide-body A330, dubbed A330 Neo, on Monday in an attempt to overturn Boeing's dominant position in the lucrative long-range passenger jet market.

The AirAsia X commitment was hailed by Airbus as an endorsement for its strategy of improving a 20-year-old plane over designing a new one. The aircraft has been slammed by rival Boeing as being less fuel efficient than its Dreamliner.

"The confidence that Tony [Fernandes, chief executive of AirAsia] and his team have placed in the A330 Neo is therefore a clear endorsement of the step change we are bringing to the market in this size category," said Fabrice Bregier, chief executive of Airbus' passenger jet business.

Mr Fernandes said: "We have been encouraging Airbus to launch this new version of the A330 for some time now," adding that it would help to "develop further our low-cost long haul model".

The A330 Neo, which has a new Rolls-Royce engine, is expected to cut fuel consumption by 14 per cent compared with existing A330s, according to Airbus.

The group has forecast A330 Neo sales at more than 1,000 units and deliveries starting in 2017.

The A330 Neo's first buyer at the show was Los Angeles-based Air Lease Corporation, whose chief executive, Steven Udvar-Hazy, had also been urging Airbus to offer a version of the A330 with more-efficient engines.

The company is hoping to recreate the success of the re-engineered narrow-body A320. More than 3,000 A320 Neo planes have been sold following deals at the Farnborough Air Show.

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Boeing secured its largest order on Tuesday from the aircraft leasing arm of CIT, the US group. It agreed to buy 20 Dreamliners in a deal valued at $2.5bn at catalogue prices.

The Dreamliner is mainly made from lightweight carbon composites rather than traditional aluminium to reduce fuel burn. The A330 Neo, like the existing A330, will be constructed from aluminium.

Airbus has sold about 1,300 A330s, of which the vast majority are still in service. Airbus's main rival Boeing, ahead of the show, raised its forecast for industry aircraft sales over the next two decades to $5.2tn.

AirAsia X already operates 23 Airbus A330 aircraft. In December, Airbus won a deal from AirAsia X for 25 A330s valued at $6bn.

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