AirAsia extend Airbus order by another 100 A320neo

AirAsia will buy an extra 100 Airbus A320neo jets, taking its record-breaking order to 300 planes, a source said, a deal that would make the Malaysia-based low-cost airline one of the world's largest carriers. AirAsia and Airbus announced an USD$18.2 billion deal for 200 planes at the Paris Air Show last month, shattering aviation records for the largest ever airline order. The additional order takes the list price of the contract to a staggering USD$27 billion. The bumper order highlights Airbus's growing lead over Boeing and throws the spotlight on AirAsia's aggressive growth plans at a time when high oil prices and an uncertain global economy are clouding the outlook for travel demand. Analysts expect the extended order to drive AirAsia's expansion as it competes with short-haul carriers such as India's IndiGo, Singapore's Tiger Airways and Australia's Jetstar in the Asia-Pacific region, the fastest growing in the world. "AirAsia's last replacement order was in 2007/2008. These new orders are long overdue so it's not an aggressive order," said Kunal Sinha, an aerospace expert with the Frost & Sullivan consultancy. "AirAsia's new fleet is to be used mostly to link Southeast Asia to India and China. By 2015, Southeast Asia will have open skies so you have to have a growth plan."

Boeing on Wednesday said it expected 33,500 new planes to be delivered by 2030, driven by growth in India and elsewhere in Asia. AirAsia plans to list its operations in Thailand and Indonesia this year as it expands in those markets and is in talks to open a hub in Singapore, its chief executive Tony Fernandes has said. Like the previous order, the additional 100 planes would also use CFM International engines, the source with direct knowledge of the deal said, declining to be identified because the deal is not public yet. The source said AirAsia would receive a discount for the entire order, but did not give further details. AirAsia's regional head for corporate finance and treasury Aireen Omar said, "We ordered 200 and so far there are no changes." An Airbus spokesman said the manufacturer would not comment on commercial discussions with customers that were confidential. AirAsia, which flies to 63 destinations in more than 20 countries, has 90 planes currently, almost all single-aisle Airbus A320s. Besides the 300 Airbus A320neo deal, it has another 75 Airbus aircraft already on order. "Though we look aggressive, we have expanded very cautiously," Fernandes said this week. "But I have always said this airline is worth at least 500 aircraft."

According to International Air Transport Association (IATA) data, United Continental had the largest passenger fleet of 737 planes at the end of 2010, followed by Delta Air Lines with 722, American Airlines with 618 and Lufthansa with 427. Non-IATA member Southwest Airlines, the only low-cost carrier currently in the top five, has around 550 planes. "AirAsia had the first-mover advantage and it continues to stay ahead of the game by ordering fuel-efficient planes and keeping the size growing," said an aviation analyst with a Malaysian investment bank who declined to be identified due to company policy. "But the key risk is if expansion plans do not succeed. The Malaysian base is fairly saturated so if the other markets do not grow or cannot take off because of protectionism or other factors, then they will find themselves having to manage a lot of aircraft," the analyst said.

Fernandes said the A320neo purchases would be funded by debt and cash flow as staggered deliveries begin in 2016. "We're buying the planes now, we don't pay for it all now. They become due in 2016 so we're just paying some deposits now which is not erroneous at all to our balance sheet." The A320neo is a version of Airbus's best-selling 150-seat passenger jet offering fuel savings with new engines from 2015. The huge orders for the single-aisle plane at the Paris Air Show have piled pressure on rival Boeing to come up with a newer version of its 737 workhorse. Fernandes said his airline's growth was closely twinned with Airbus. "We have a fantastic relationship with Airbus," he said. "They are much more than just suppliers to us. I credit them tremendously with our growth and I want to be more than just a customer of theirs."

It is now part of aviation industry lore that Fernandes asked Airbus chief salesman Joe Leahy to come on to the dance floor of a Paris nightclub before signing the A320neo deal. "As part of a family we do some crazy things together," the 47-year-old Malaysian millionaire said. Asian budget airlines placed a record USD$42 billion in plane orders during the Paris Air Show, illustrating their high expectations for travel in the world's fastest growing market and also triggering worries some may not survive. Many of the no-frills carriers such as AirAsia and Indigo aim to more than double their fleets to power rapid growth, partly at the expense of full-service airlines such as Cathay Pacific and Singapore Airlines. Worldwide passenger demand is expected to rise 4.4 percent over the next year with the Asia-Pacific region growing faster at 6.4 percent, according to IATA, which represents the majority of airlines operating in the USD$598 billion industry. The Centre for Asia Pacific Aviation, an independent aviation market research provider, said low-cost carriers accounted for 16 percent of the market in terms of seats within Asia Pacific last year, up from 6 percent in 2005. Their market share is set to rise 2 percentage points annually to about 26 percent in 2015, it said.

Paris air show - orders soar

Airbus faced the unexpected and daunting task on Monday of delivering a marketing blow to rival Boeing and maintaining momentum for a revamped jet with its two flagship planes grounded at the Paris Air Show. The European planemaker has targeted an order surge worth tens of billions of dollars, but was left reeling as the world's largest aviation event was jinxed by a series of mishaps including a taxiway collision involving the A380 superjumbo. The right-hand wing-tip of a test plane for the world's largest jetliner, with a wingspan of almost 80 meters (yards), scraped a building at Le Bourget airport on Sunday and was withdrawn from the air show's traditional flying displays.

A second aircraft, the delayed European A400M airlifter, was also withdrawn from air display after a gearbox problem but will be allowed to perform in a flypast when French President Nicolas Sarkozy inaugurates the biennial event on Monday. The A380 collision caused dismay hours after the arrival of its new rival Boeing's elongated 747-8 superjumbo which is showing its distinctive silhouette abroad for the first time. The latest version of the legendary 747 jumbo touched down in orange and red "sunrise" livery symbolizing the importance of Asia, whose economic growth is set to dominate aviation in coming years starting with this week's air show. Industry sources expect some sales of both the A380 and 747-8 during the June 20-26 event but the main joust for market share concerns narrow-body, medium-haul 150-seat planes.

The air show could bring two record deals on successive days as Airbus tries to woo buyers for a revamped A320neo with more efficient engines, saving airlines 15 percent in fuel costs. "We clearly believe in the business case and the orders you are going to see at the show are going to be astounding," said David Hess, chief executive of engine maker Pratt & Whitney. Buyers are already camped out in Paris hotels to negotiate the final details of major deals but are aware that Airbus has staked a lot on winning a slew of orders for the A320neo at the Paris show, and some are said to be digging in their heels. A $16 billion provisional deal from IndiGo to buy 180 A320neo passenger jets, first announced in January, was mired in further negotiations that could spill beyond the air show. The deal if finalized would set a record for the number of planes in one transaction. But sources say if all goes to plan it is set to be eclipsed by a 200-plane order being fine-tuned between Airbus and Malaysia's AirAsia.

Demand for aircraft is on a sharp rebound driven by demand from Asia's rapidly growing airports and the Middle East. "Those two markets will enjoy at least one-third if not more of the demand increase for global air traffic in the next decade," said Philip Toy, a managing director at Alix Partners. The Airbus A320neo has also benefited from airline concerns about fuel costs. Boeing said on Sunday it would decide by end-year whether to upgrade its 737 with new engines from about 2016, as Airbus has done, or build an all-new jet in 2019. "They will sell hundreds but it is hard to tell what is gross and what is net, what is a conversion from an earlier order. There are myriad complications," said Teal Group analyst Richard Aboulafia said of the A320neo.

Orders are likely to include a confirmation of an $8 billion 100-plane order from leasing giant ILFC and another plane order for both Airbus and Boeing planes another big lessor, GECAS. But it could be Boeing that grabs attention on day one of the show with a sale of 777 wide-body airplanes to Qatar Airways -- a reminder that the two planemakers are battling for market share on a second front after Airbus revamped its A350. Russia and China will flex their muscles as potential rivals to Airbus and Boeing, especially during a Tuesday visit by Russian Prime Minister Vladimir Putin and some analysts expect surprise sales. But Western planemakers say it will be some time before newcomers mount a serious challenge in civil aerospace.

AirAsia could order upto 200 A320's

AirAsia could buy as many as 200 Airbus jets in a landmark deal shaping up to dominate the Paris Air Show, industry sources said. The deal is among the most keenly awaited in a recovering civil aviation sector, and could help to determine the success of the European planemaker's efforts to stymie a draft project by rival Boeing to design a new 150-200 seat aircraft. Under pressure from airlines to provide a cushion against high fuel costs, Airbus is marketing a new version of its best-selling A320 passenger jet with new engines which it says will save 15 percent in fuel bills starting from late 2015. Malaysia-based AirAsia has said it is considering buying at least 150 of the "A320neo" aircraft as the region's largest budget carrier expands in the face of high oil prices.

But industry sources told Reuters that the range of negotiations is higher than previously expected and could reach 200 planes, trumping a 180-plane provisional order from India's IndiGo as the industry's largest ever by number of aircraft. "They are talking about 150 to 200 aircraft," an industry source familiar with the negotiations said, asking not to be named. Such a deal would be worth $14 billion to $18 billion at list prices, depending on the exact model of aircraft involved, though big plane orders tend to generate significant discounts. The record for the largest Airbus deal by value is held by Emirates airline with a $22 billion purchase in 2007.

EADS  subsidiary Airbus declined to comment. A spokesperson for AirAsia said talks were continuing. Both sides hope to announce the deal at the Paris Air Show on June 20-26 but the size of the deal and its timing remain uncertain because of the sums involved, industry sources said. AirAsia founder Tony Fernandes has set his sights on doubling the size of the nine-year-old airline to rival Southwest Airlines' fleet of more than 500 jets. The airline has already ordered 175 of the original design of A320, of which 86 have yet to be delivered.

However in a sign that the Airbus deal should not be taken for granted, Fernandes wrote on Twitter on Friday that he was asked to meet aircraft manufacturer Bombardier in Montreal. The Canadian company wants to challenge Airbus and Boeing with its CSeries planes. Fernandes has regularly broken the secretive protocol of aircraft negotiations by tweeting about the talks. Boeing is mulling whether to follow Airbus down the "re-engining" route by tinkering with its 737 passenger jet or making more revolutionary changes with an all-new plane offering even bigger fuel savings to cash-tight airlines from 2020.

"The A320neo appears to have good traction with current A320 fliers, particularly low cost carriers," said Rob Stallard, aviation analyst at RBC Capital Markets, who predicts around 300 orders for the $90-million jetliner by the end of the year. "Even if Boeing goes ahead with a clean-sheet new narrowbody with entry into service around 2020, we think most Airbus narrowbody customers will stick with the neo due to the high cost of switching providers," he added. Airline executives say a key factor for Boeing will be whether Airbus manages to convert any of its major traditional clients, especially U.S.-based ones such as Southwest.

The AirAsia order, if confirmed, could also give a much-needed boost to transatlantic consortium CFM International. Industry sources say the Cincinnati-based company is the front-runner to win a lucrative contract for the airplanes' engines, breaking a drought of orders after rival Pratt & Whitney scooped up most orders so far for the A320neo. CFM is a joint venture between General Electric and France's Safran. Pratt & Whitney has developed an engine called the Geared Turbofan with a change of architecture for the narrowbody 737 and A320 market, the largest slice of the commercial aerospace industry worth $1.7 trillion in plane sales over 20 years.

Indian Aviation expanding rapidly

India's largest private airline Jet Airways and budget carrier GoAir are in line to order $6.5 billion worth of Airbus aircraft at the forthcoming Paris Air Show, The Economic Times reported on Thursday. The financial daily quoted Jet chairman Naresh Goyal as saying that they were buying 10 A330 aircraft worth $2.5 billion as part of plans to expand its routes in Europe. GoAir is looking to order at least 50 narrow-body A320 jets worth $4 billion for short-haul domestic routes, which will be brought into service as soon as next year, the report said, quoting two sources familiar with the matter.

Both orders were still being negotiated but were in the final stages, the newspaper added, quoting unnamed sources within Airbus. A Jet Airways spokeswoman in New Delhi told AFP that she had no details on the exact nature of the orders, as Goyal was speaking on the sidelines of the recent International Air Transport Association annual general meeting in Singapore. But she added: "We're asking for just a few (aircraft) because that's in line and keeping with our growth plan."

No one was immediately available for comment at GoAir. The Economic Times said budget airline IndiGo would also push ahead with a previously announced order for 180 A320 aircraft with an estimated value of $15 billion, after signing a memorandum of understanding with Airbus last year. Air India, the state-run national carrier, is planning to take 10 A330s and 16 A320s on a rental basis, it added. Aviation has taken off in India in recent years but private airlines have been grappling with rising fuel prices and a slowdown in economic growth that has hit business.

Indigo's troubled lady pilot arrested for forging her Licence

A woman pilot has been arrested in the capital for allegedly using a forged marksheet of the DGCA test to procure a commercial pilot licence. Parminder Kaur Gulati, a suspended pilot of Indigo, was apprehended by a team of Delhi Police's crime branch yesterday following investigations into a complaint filed by the Directorate General of Civil Aviation (DGCA). Gulati allegedly produced the forged marksheets of DGCA Airline Transport Pilot Licence (ATPL) test to get the commercial pilot licence. With ATPL, one can become a co-pilot; and to get a full-fledged commercial pilot licence one should have ATPL with adequate flying hours.

Sources said Gulati had allegedly produced forged marksheets of the ATPL examination conducted by the DGCA. She holds a valid commercial pilot licence. Last year, during a flight landing in Goa by Gulati, technical errors were noticed and DGCA had constituted an enquiry to look into it. Sources said, during investigations it came to light that Gulati had allegedly forged marksheets of the ATPL examination, following which she was suspended by the airlines.

Lady Pilot??! - Passenger denies to take the flight

After the chilling incident last month were a Indigo A320 almost crashed in Goa International airport by its lady Captain, a passenger of the same airliner refuses to take the flight just because his Captain was another lady pilot.

A Mumbai-bound flight was delayed by one-and-a-half hours at the Delhi airport yesterday morning -- first by fog and then by a passenger who did not want to travel on a plane piloted by a woman. Passengers on board had a curious story to tell as to why Indigo flight 6E 179, supposed to depart at 8.10 a.m., could not take off before 9.40 a.m.  "First the flight was held up by a slight fog. Then, just when we were about to fly, the doors were opened again at around 9 as a middle-aged man seated a couple of seats away from me objected to a woman piloting the plane", one of the passenger on board flight 6E 179.

The man apparently turned jittery after the customary flight announcement was made, giving the pilot's name - it was a woman."The man first started grumbling to co-passengers, 'I don't want to die! She can't take care of the house, how will she take care of a plane?' . "He called the airhostesses and objected to the woman pilot. Ground staff were called and they took him out of the plane. This situation did not change for nearly 40 minutes even as other passengers became restless and upset." The man relented only after he was told he would be taken off the plane -- with his check in baggage.

Indigo's lady Captian who can't land the plane

On January 11, when IndiGo Airlines’ flight 6E 333 had a bumpy touchdown at Goa International Airport, it was a close brush with disaster for over 100 passengers aboard the A 320. The woman pilot in command landed the plane on its fragile nose wheel — an erroneous manoeuvre that could have even led to the flying machine disintegrating and catching fire.

Alarmingly, an inquiry conducted later by the Director General of Civil Aviation ( DGCA) revealed that on 15 to 20 earlier occasions, Captain Parminder Kaur Gulati landed the aircraft at an angle indicating that the nose wheel may have touched the tarmac first. This is unheard of in aviation circles. Aircraft normally land on the main landing gear ( MLG), comprising the two sets of rear wheels. After these bigger — and sturdier — wheels touch the runway, the speed of the plane is reduced. This is followed by the already opened nose landing gear ( NLG) — the smaller front wheel just below the cockpit of the aircraft — coming in contact with the surface.

Flight 6E 333 took off from Indira Gandhi International Airport in Delhi and was bound for Goa. Abhas Gupta was Gulati’s copilot aboard the aircraft. Captain Gulati appeared to have been so oblivious to the abnormal and highly risky touchdown at the Goa International Airport that she just reported the incident as a “rough landing”. Not only did the steep descent leave the passengers’ hearts in their mouths, it went against the recommendations of aircraft manufacturer Airbus, too. This was not the end of the matter.

After the rough landing in Goa, Gulati and the engineer concerned merely carried out an inspection of the aircraft and reported that everything was normal. The airbus was, therefore, cleared to fly back to Delhi. The Indigo flight 6E 332 — with passengers on board — started its return journey to Delhi. But midway through, the plane’s electronic systems signalled a problem in the landing gear. The warning related to the nose undercarriage being internally damaged.

The electronic signal that flashed in the cockpit showed that the landing gear didn’t retract because it was stuck in the “ down position”. The Indigo aircraft had to then return to Goa to offload the passengers. Later, it took off from Goa without the passengers and landed at IGI Airport. The combined probe carried out by the DGCA, Airbus and IndiGo confirmed that the aircraft had landed on the NLG first, followed by the MLG. “This is a non- conventional landing,” the report accessed by MAIL TODAY said.

Gulati’s flying history came under the scanner of the investigators. An analysis of the digital flight data recorder ( DFDR) of the aircraft she previously flew pointed out that in her 15- 20 earlier landings the ‘ touchdown attitude’ was 3.8 degrees, which went against the recommended attitude of 5.8 degrees. Though within the safety zone, this increased the chances of the nose wheel touching first, the report stated.

The standard glide angle followed by an aircraft during descent is 3 degrees and the nose of the aircraft should be at 2.5 degrees at the horizon level. Just before touchdown, the latter is increased to 5 degrees. However, in the IndiGo flight’s case, the pilot gave a negative pitch attitude and reduced the angle to 3.8 degrees resulting in the aircraft landing on the NLG. The report disclosed that the auto pilot was disconnected at 311 feet above ground level. At 100 feet, the captain gave a pitch- up command to ensure that the MLG touched the runway first.

“At the last moment (around 10- 20 feet), the captain gave a nose- down input. This resulted in a negative pitch attitude during touchdown,” the document revealed. The regulator (DGCA) and the investigation board recommended that the pilot should be sent on correctional training. IndiGo CEO Aditya Ghosh admitted that the pilot had landed the aircraft on its nose wheel. He further claimed that all the recommendations made by IndiGo pertaining to the incident had been accepted by the DGCA.

“Indigo conducted an investigation and the inquiry board recommended that the captain should be sent on training to correct her landing technique. She was also advised to undertake a cockpit resource management refresher course as well as a route check. She has already undergone these procedures,” Ghosh said.

Significantly, the lady captain has earlier been counselled for a serious error in the go- around approach during a landing at the IGI Airport. Commenting on the incident, aviation expert Captain A. Ranganathan said: “The nose wheel can’t take the impact of landing. The pilot’s landing on the plane’s nose could have led to serious consequences. The episode shows there was a deficiency in training.” Former DGCA Kanu Gohain also felt that it was a very serious incident since the NLG is the weakest part of the aircraft and not designed to handle its landing weight. For the passengers, it was nothing less than a miraculous escape.

Indigo has signed the largest jet order deal in aviation history

India's IndiGo has signed a deal for the largest jet order in aviation history, Airbus announced Tuesday. It's also the first order for Airbus' re-engined A320. IndiGo, India's largest low-cost airline, signed a memorandum of understanding to buy 30 A320s and 150 A320neos -- the A320 new engine option that Airbus launched Dec. 1, with entry into service set for 2016. "It is the largest single firm order number for large jets in commercial aviation history, and also makes IndiGo a launch customer for the A320neo," Airbus said. The order will continue to allow IndiGo to offer low fares, while reducing its costs and improving environmental performance, airline co-founders Rakesh Gangwal and Rahul Bhatia said in a news release. Airbus says the A320neo will use up to 15 percent less fuel than existing A320s, cutting up to 3,600 metric tonnes of carbon dioxide emissions a year, with a double-digit reduction in nitrous oxide emissions and reduced engine noise. Airbus is offering both CFM International LEAP-X engines and Pratt & Whitney PurePower PW1100G engines on the A320neo. The release said IndiGo would select engines at a later date. IndiGo already had ordered 100 A320s through Nov. 30, 2010 and received 37 of those, according to Airbus. John Leahy, Airbus' chief operating officer, customers, said: "This order positions IndiGo to take full advantage of the predicted growth in Indian air travel and we are delighted that they continue to build their future with Airbus."

IndiGo to expand

Indian budget carrier IndiGo has received the government's nod to buy 150 aircraft over the next 2 to 3 years as it looks to fly international routes, a company executive said on Wednesday. IndiGo will have completed five years of operations in August 2011, which makes it eligible to fly overseas routes. "We will look at all the manufacturers," Rahul Bhatia, group managing director of parent InterGlobe Enterprises, told reporters. He did not say how much the company aimed to spend on the planes. India's expanding aviation sector, which has close to a dozen carriers, are looking to add to their fleet as the booming economy revives the market for air travel. Boeing, which competes with Airbus to sell planes in India, estimates the country will buy 1,150 commercial jets valued at $130 billion over the next 20 years. IndiGo had hired four banks for an initial public offering to raise about $400 million.