Big Airbus A320neo Deal

Airbus has won big with a brand-new deal for its A320neo family, comprising aircraft.

As part of the Memorandum of Understanding, up to 50 aircraft could be purchased, comprising 25 firm units and options for an additional 25 aircraft.

The customer in question is Air Astana, which is looking to overhaul its single-aisle operation substantially, and Airbus will now be able to play a major role in that moving forward.

In the agreement, Air Astana isn’t strictly committing to the A320neo base model, but rather seeking to rely on the broader A320neo family and models to best serve its network.

Air Astana says the majority of its new orders will be for the A321LR. This is a popular option for airlines seeking not just to add capacity to their network but also to lengthen flights substantially.

Air Astana’s large order for a new fleet of Airbus A320neo family aircraft reflects a commitment to maintaining its reputation for operational efficiency and service excellence in the long term. The Airbus A320neo family has proven to be an outstanding success in service with Air Astana over many years and I’m confident that the new fleet will continue to boost sustainable growth and profitability in the long term.

Peter Foster, CEO of Air Astana.

Air Astana sees the deployment of the A321LR as critical; it has already set the standard over the last half-decade as an industry leader in range and capacity.

This company has utilised the aircraft for services throughout Europe and Asia, highlighting exactly what the Airbus A321LR is capable of for this business.

For Air Astana, reliance on the A320 family, especially the A320neo, has been critical to elevating the airline’s business.

The A320ceo first joined the airline’s fleet in 2006, helping link domestic services and, later, international markets in Central Asia and the Caucasus.

Meanwhile, the A320neo was first delivered in November 2016, followed just under three years later in September 2019 with the delivery of the first Airbus A321LR model, which has relied primarily on this family for its operation, whether across Air Astana or the low-cost FlyArystan unit.

Airlines Race For A320neo Family

It has been a busy last couple of months, let alone years, for the A320neo family, which has capitalised on its competitor Boeing’s misfortunes by gaining substantial market share.

With this in mind, Airbus surpassed the 58-year-old record held by the American planemaker as the best-selling model, thanks to aircraft deliveries.

For Airbus to achieve such a feat, following hard work and pushing a product to customers that stacks up nicely against the 737, Airbus has had to give airlines a reason to purchase the A320 family, and more often than not, it has done so.

That stability is broadly comparable to what has been going on at competitor planemaker Boeing, which has had an incredibly turbulent last half-decade, affecting its output rate.

Over the last five-plus years, Boeing has experienced repeated groundings of its 737 program, resulting in reduced output levels, halted production, and other consequences.

Data support the view that yearly delivery rates fell off a cliff, particularly for Boeing, from the late-2010s to the early-2020s. Although the pandemic affected this period, it didn’t alleviate the pressures; instead, it made the challenges even more pronounced due to the program’s status.

Additionally, even after the COVID-19 pandemic eased and restrictions were lifted, Boeing continued to struggle with output levels, and the program has not increased at the same rate as Airbus and the A320.

With such a strong backlog still present for the A320neo family, Airbus will continue to face pressure to address it, and neccesary production rates will help work through it. Still, airlines are also facing a strong warning to get in sooner rather than later.

The A320neo family has seen such strong demand that airlines seeking planes in the short term have essentially been told to walk away, for there remains no possible delivery window for these in-demand aircraft.