Airbus chases A330 deals at air show as model enjoys second wind

At this year’s Farnborough Air Show, Airbus is chasing orders for its A330neo airliner, positioning the wide-body model as an attractive alternative to more advanced jets because of its favourable economics and availability. 

Among the possible buyers of the jet – a more advanced version of an aircraft that first entered service in the mid-1990s – are Saudi Arabia’s Flynas and Flyadeal, as well as Vietnam’s Vietjet Aviation, according to people familiar with the discussions. 

Carriers studying orders are either still negotiating possible contracts or have completed agreements that they plan to announce at the expo kicking off on Monday (Jul 22), said the people, who asked not to be identified discussing private deliberations. 

A large order haul would shore up the backlog for the A330neo, which has more fuel-efficient engines and a redesigned wing. Airbus has been particularly successful over the past year with the more advanced A350 airliner, its other wide-body aircraft, though slots are scarce for any new buyers. 

Boeing is also working to build momentum for its 777X model, whose sales have flagged amid certification delays that have pushed the jet’s market entry back by at least five years from its original date. Korean Air Lines said in June that it’s in the market for as many as 30 new jets from the US planemaker and is evaluating the smaller 787 Dreamliner model. The airline also said at the time that it’s planning to order new freighters and is looking at Boeing’s 777X for that.

With the A321neo sold out until well into the next decade, and both Airbus and Boeing struggling to ramp up production, conversations with airline customers have circled around supply chains and delayed airplanes. Still, the annual trade show that alternates between Farnborough and Paris is still expected to produce hundreds of commercial jet orders in a mix of new deals, commitments and already booked orders.

Airbus and Boeing declined to comment on prospective sales at the show.

“Wide-body sales are likely the centre of action at Farnborough this year,” said George Ferguson, an analyst with Bloomberg Intelligence. Salespeople for the twin-aisle models will get a “workout” at the airshow, he predicted in a Jul 15 report.

One deal that stands to be among the biggest in coming weeks is still being negotiated and may not land in time for the air show: Qatar Airways is exploring a major purchase of as many as 200 wide-body jets, to be split between Boeing’s 777X and 787 models, and the Airbus A350, which Bloomberg News first reported in March. 

Talks continue and no agreement may be announced in time for the show, some of the people said. Qatar Airways had no comment.

Flyadeal, the low-cost unit of Saudi Arabia’s flag carrier Saudia, is close to an order for 10 to 20 A330neos, some of the people said. Flynas, another Saudi discounter, is also mulling over a 15-plane order for the model, the people said. An official for Flyadeal said the airline is evaluating wide-body options and that it has not made any decisions. Flynas declined to comment.

Vietjet, which announced a preliminary order for 20 A330s in February, will likely firm up that purchase at the air show, some of the people said. The Vietnamese budget airline signed a memorandum of understanding for the wide-body jets with Airbus at the Singapore airshow early in the year.

While the focus of the expo near London may be on wide-body jets, single-aisle models will still play a large role. Among major accords that may be formally signed is Cebu Air’s deal for as many as 152 of Airbus’s A321neo jets, a transaction valued at US$24 billion based on price. The companies already reached a preliminary accord at the start of July.

But with order backlogs for the Boeing and Airbus workhorse models stretching out into the early 2030s, airlines have less of an incentive to lock in deals far into the future that could carry hefty price increases due to inflation and annual escalation clauses. BLOOMBERG