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Asian planemakers win Farnborough orders
While the launch of the A330neo (new engine option) grabbed the headlines at Farnborough, emerging Asian manufacturers heralded their entry into global markets by winning orders at the UK air show.
September 1st 2014
When Airbus confirmed it was launching its upgraded A330Neo, quickly followed by high-flying Malaysian long-haul low cost carrier AirAsia X’s order of 50 of the type, for $13.8 billion at list prices, the order spotlight at the biennial Farnborough Air show clearly had moved from the Gulf to the Asia-Pacific. Read More »
More importantly, away from the attention focused on the Airbus and Boeing big guns, manufacturers in China and Japan announced airline commitments for their aircraft and Mainland Chinese aircraft lessors showed they were intent reaching the top tier of their industry sector.
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The leasing companies, including Hong Kong Aviation Capital (HKAC), a unit of China’s Bohai Leasing, were the big spenders at the mid-July show. HKAC signed a US$7.76 billion order for 70 A320neo, its first direct order with Airbus and an acquisition that will double the lessor’s current fleet of more than 50 Airbus single and twin aisle airplanes.
Already a major player in the leasing market, the Bank of China’s Singapore-based BOC Aviation put another 43 A320 family aircraft on the order book for the Toulouse manufacturer. “Following our order of 38 A320ceo aircraft in the last 18 months, all of which are now placed, we are seeing additional demand for both the A320ceo and neo,” said Robert Martin, BOC Aviation’s managing director and chief executive.
“By adding this order to our pipeline for the next five years, we are confident at meeting the needs of airlines that are expanding or replacing older fleets.” Including this latest purchase agreement, BOC’s orders for Airbus aircraft have reached 255.
And the lessors kept signing on the dotted line as the summer week progressed: The CIT Group of the U.S. (15 A330-900neo and five A321ceo); Dublin-based SMBC Aviation Capital (110 A320neo and five A320ceo); Avolon, also based in Dublin (15 A330neo); Intrepid Aviation of the U.S. (six B777-300ERs); Netherlands-based AerCap (50 A320neo) and Los Angeles-based Air Lease Corporation (ALC) at 25 A330-900neo and 60 A321neo.
Japan’s Mitsubishi Aircraft Corporation won a landmark commitment from the U.S. for 40 of its 90-seat MRJ regional jet, which is still under development, from Eastern Airlines. At $46.8 million per aircraft or a total value of $1.87 billion, the first delivery to its Florida owner is scheduled for 2017. Miami-based Eastern Air Lines, which collapsed in 1991 and is scheduled to re-launch under a new owner next year, placed the firm order of 20 MRJ90s with a memorandum of understanding for options of 20 aircraft.
Myanmar operator, Air Mandalay, ordered six MRJ90s with options for four aircraft. Based in Yangon, it is the first Asian airline outside Japan to order the jet.
The Commercial Aircraft Corporation of China also won six orders at Farnborough for its regional jet, the ARJ21, bringing total orders to 258. While two of the orders were from China, the third was from the Ministry of Transport of the Republic of Congo for three ARJ21-700s, the first African country to buy the plane.
Speaking at the show, Dang Tiehong, deputy general manager of COMAC’s sales and marketing department, said the company plans to manufacture 20 ARJ21s every year from 2018 and added the first foreign ARJ21 customer can expect delivery of its launch aircraft between 2016 and 2017.
Purchase agreements for 400 C919s, with its maiden flight scheduled for 2015, have been signed by 16 customers, most of them in China. Its maiden flight is scheduled for next year. First deliveries will be by 2018, COMAC said.
In the meantime, Airbus easily came out on top in the order battle. The two global manufacturers signed up customers for aircraft worth $115.5 billion, which was down from last year’s Paris Air show where the big two recorded orders estimated at $134.7 billion.
At Farnborough, Airbus wrote deals for 496 aircraft, valued at $75.3 billion. Boeing won contracts for 201 aircraft, for $40.2 billion. However, the U.S. company continues to lead Airbus in sales for the year, with firm orders (at the conclusion of Farnborough) for 783 aircraft compared with Airbus at 649.
The much anticipated A330neo, with new engines that offer a 14% improvement in fuel efficiency, had a well-attended christening at the show. Airbus secured orders for 121 of the airplanes after the launch announcement, at an estimated value of $33.2 billion.
For Boeing, Qatar Airways finalized its $19 billion purchase agreement for 50 B777Xs at Farnborough.
