China Southern and Indian Airlines commit to orders during visits by EU delegates
Airbus scored key orders last week in the powerhouse markets of China and India, with a follow-on A330 deal with China Southern Airlines and a long-delayed 43-aircraft A320-family commitment from Indian Airlines.
The agreements were signed during visits to the countries by European Union delegates, led by UK prime minister Tony Blair.
The China Southern order comprises eight A330-300s and two A330-200s for delivery in 2007 and 2008. It is the carrier’s second A330 commitment, the first being in 2003 for four Rolls-Royce Trent 700-powered A330-200s, all delivered earlier this year.
In India, Blair’s visit coincided with the Indian government’s final approval of a long-delayed plan for state-owned Indian Airlines to order 43 A320-family aircraft. Indian badly needs new aircraft to compete better with fast-growing private airlines.
The airline has not ordered any new aircraft for well over a decade. Its board approved the order in March 2002, but the government repeatedly deferred approving it.
Civil aviation minister Praful Patel says the net cost of the order will now be Rs98.9 billion ($2.25 billion), down from the previous Rs102.3 billion.
The first aircraft will be delivered in the middle of 2006 and deliveries will continue at a rate of one a month. In total, 20 A321s, 19 A319s and four A320s will be added, all powered by CFM International CFM56 engines.
Patel says two fresh rounds of pricing negotiations were held with Airbus this year, one in March and another on 6 September. At the March meeting, Airbus cut a further $32 million from the package price, he says, followed by a “further direct concession of $75 million” at the last meeting.
Patel adds that “counter-trade and offset by both Airbus and engine manufacturer CFM was increased from 30% to 40%”, and Airbus agreed to set up a pilot training centre in India. It will also open spare-parts warehouses and has committed to setting up a maintenance, repair and overhaul facility in India with partners.
NICHOLAS IONIDES/SINGAPORE
Source: Flight International
