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 Airbus Confirms $9.4 Bln AirAsia Order

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PostSubject: Airbus Confirms $9.4 Bln AirAsia Order   Tue Dec 18, 2012 7:38 am

irbus said on Thursday that Malaysian group AirAsia was the customer behind a previously announced order for 100 A320 aircraft worth around USD$9.4 billion at list prices.

The deal, which provides AirAsia with an additional 64 A320neo and 36 A320ceo aircraft, was formally unveiled at Airbus's wing assembly plant in Broughton, Wales, in the presence of British Prime Minister David Cameron.

The contract will safeguard 1,500 Airbus jobs in Britain and 7,500 in the group's wider supply chain, Cameron's office said.

"This is excellent news and a tremendous boost for the workforce and for UK manufacturing," Cameron said in a statement.

"Today's announcement demonstrates the strength of the UK aerospace sector and the important role it plays in growing and rebalancing our economy."

Alongside AirAsia's chief executive Tony Fernandes, Cameron toured the Broughton plant, which employs over 5,000 people and will be making the wings for the aircraft.

The contract also reaffirms AirAsia, Asia's largest low-cost carrier, as the world's largest A320 customer by number of aircraft ordered.

"We have just bought 100 planes which makes a total of 475. To meet the amazing demand in Asia," Fernandes wrote on Twitter.

AirAsia placed a record 200-plane Airbus order in 2011.

Fresh talks between AirAsia and Airbus, initially for 50 jets, were first reported in May.

But the European plane maker's chances for a deal were thrown into doubt when Fernandes held surprise talks with Bombardier at Silverstone in July, on the eve of the British Grand Prix.

In September, industry sources said AirAsia and Airbus were closing in on an expanded deal for 100 aircraft.

(Reuters)

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