The Paris Air Show 2011, would be a prestigious event for Airbus, thanks to Asian carriers.
Budget airlines have taken off on a lucrative venture in the Asian subcontinent. A budget airline company seems to prop up practically in every Asian country mainly for domestic routes.
However with the likes of Kingfisher Airlines of India, it has proven to show that it could be a commendable international carrier as well.
The demand for air travel has made the demand for aircrafts higher.
The European commercial aircraft manufacturer Airbus is flying high, with two major Asian orders worth over $10 billion announced on Thursday.
The orders were for re-engined version of its medium haul A320
Airbus is already on its way to achive its target of swelling its order book for the plane to 500 by the end of next week?s Paris Air Show.
The orders will also pressure arch-rival Boeing Co. to either offer its own re-engined version of its single-aisle 737, or to leapfrog Airbus with a clean-sheet design for a new aircraft offering even greater gains in operating costs.
Go Airlines (India) Ltd.
The Indian budget carrier announced on Thursday that it was buying 72 Airbus A320 neos, a more fuel efficient versions of the single aisle aircraft,
which is a favorite of low cost airlines around the globe.
The order is worth $7 bilion on the basis of list prices.
Cebu Air Inc.
The Phillippines largest budget carrier by sales, also announced on Thursday it had placed firm orders for 30 A321neos, a stretched veriosn of the A320. The airline also has converted seven options for A320s into firm orders.
The 37 planes are worth $3.8 billion on the basis of Airbus’s list prices.
Airlines generally can negotiate deep discounts from published prices for bulk orders.
Malaysian airline AirAsia is also expected to announce a major order for A320neos during the air show, and other airlines are lining up, industry experts said. D an
Neither of Thursday’s orders included choices of engines. Airlines have the option of the Leap-X engine made by CFM International?a joint venture of General Electric Co. of the U.S. and Safran SA of France?and the PW1100G engine made by Pratt & Whitney, a division of United Technologies Corp.
Before Thursday’s two order announcements, Airbus had taken in 332 orders for the A320neo, which it claims will deliver 15% fuel savings due to more efficient engines and wing-tip devices known as sharklets.
Officials of the Toulouse, France-based airplane builder and of its parent company European Aeronautical Defence & Space Co. NV, have said in recent weeks that they expect the order tally will top the 500-mark by the end of the Paris Air Show that starts June 20.
Airbus plans to start delivering the re-engined versions of its A320 family by the end of 2015.
The aircraft maker had announced only seven new orders in May, which made industry observers to speculate that the company is storing up orders to announce during next weeks event at Le Bourget, north of Paris.
(More, from the Paris Air Show 2011- 20-26 June)
Source: Wall Street Journal