June 20, 2019, © Airfinance Journal: By day four of the Paris Air Show, most of the OEMs had already wrapped up their deal-making, but there was still time for Airbus to tempt another two airlines and another lessor towards the A321XLR and the A220-300 products.
Airbus and CFM are the manufacturers that will leave Paris the happiest, although ATR was keen to make its case, citing 75 “new orders” at the show. However, in line with the odd phrasing employed by most marketing departments this week, it was difficult to discern what those “orders” meant. ATR said they included “35 firm orders from NAC disclosed on June 18”, but its press release about that deal described only a “letter of intent for 35 firm ATR -600s, with options for a further 35 and purchase rights for another 35.”
Nordic Aviation Capital (NAC) signed a memorandum of understanding (MoU) for 20 A220-family aircraft, the first time the lessor has chosen the type. Airbus had an orderbook of 536 A220s at the end of May.
Flynas inked a memorandum of understanding (MoU) for 10 Airbus A321XLR aircraft. The Saudi low-cost carrier will also convert 10 existing orders for the A320neo to the A321neo. Flynas has ordered 88 A320neo-family aircraft, two of which have been delivered.
Late in the day JetBlue contracted to convert 13 existing A321neo orders into firm orders for the new A321XLR model. The New York-based carrier also firmed up an order for an additional 10 A220-300 aircraft from existing options.
Hard to discern reality from hype. Seems like there’s so much spin theses days that it cheapens the announcements; making them less remarkable and worthy of attention. Wasn’t there a time at the air shows when only firm orders were announced and letters of intent, purchase rights and even existing order conversions were mere footnotes?
Yes, Ken : looks like airlines are not in a shopping mood these days, and as always, aircraft are not sold but purchased, now the OEMs “font feu de tout bois” listing all kinds of loose LOIs, MOUs, options or purchase rights and as even the FIRM contracts themselves are easily shred to pieces overnight, in earnest, it is all PR, sales hype, obfuscation, sand-in-the-eyes with little weight as “commitments” other than window dressing to justify the cost of chic chalet luncheons and Crazy Horse/Lido/… downtown evening entertainment, the true PAS raison d’être and why we all love it …
My take away is that there is a major demand in the NMA sector and the Airbus with the A321 variants is trying to fill it.
time for Boeing to launch the NMA and blow the socks off.
Actually, I think that’s what’s going to happen. It seemed like the court of public opinion for a long time was that Boeing would launch the NMA, and then Airbus would respond with the A321+, the 322 or the fuselage stretch with the new wing, etc.,… but it looks like now the ball’s in Boeing’s side of the court. Hey! I mixed my metaphors. sorry…
Most A321XLR orders were conversions, will that be the same for Boeing. Except they sell a new plane at a loss as a conversion from an existing old but profitable line. From a revenue point of view thats losing money from both sides. Thats why the business case has so many gaps : from both the production and the sales sides.
The main Airbus A320 series problem is that they are sold out except for a few held positions per month, so to get your A321XLR in reasonable time you have to convert booked slots from another A320-series aircraft to the XLR.
Airbus remaining option is opening another FAL dedicated to the A321XLR++ and the stretch A322 with another engine option and its carbon wings. Most likely in planning just waiting for what the Boeing 797 can deliver and its selling price. The location of the new FAL can follow the engine manufacturers and MRO’s into western Poland. You can ship the aircraft and wing modules on Oder all the way to Wroclaw or further upstream.
The NMA will blow the socks of the industry. You heard it first here.