Boeing says it is "critical" that it beats Airbus in the competition to supply Malaysia's AirAsia with at least 40 new aircraft as it seeks to reverse the loss of several low-cost carrier (LCC) competitions in the region.
AirAsia is the region's largest and fastest-growing LCC, with a fleet of 20 737-300s. It plans to select a new aircraft for its Malaysian low-cost operation and Thai affiliate Thai AirAsia by year-end. Airbus A320-family and 737-700/800 narrowbodies are being evaluated. AirAsia has said it plans to place firm orders for 40 aircraft and take options on another 40, although there have been recent reports that the final deal could be for 50 firm orders.
"That is a critical one and we'll see where that one lands," Boeing Commercial Airplanes vice-president of marketing Randy Baseler told Flight International at the Japan Aerospace exhibition in Yokohama, near Tokyo. "We continue to talk to them. They operate 737s today and are doing very well with them. We hope they recognise the value of 737s."
Last week Japanese start-up Star Flyer became the eighth LCC from the Asia-Pacific region in the past year to select the A320 over the 737. But Baseler says a victory in the AirAsia competition could result in more orders than all the losses combined.
"Airbus has been very aggressive about these start-up carriers," says Baseler. "We'll see how long they stay in business. We feel very comfortable who our operators are."
The A320 has already been selected by three low-cost carriers launching this year in Singapore - Jetstar Asia, Tiger Airways and Valuair. Over the last year Air Deccan of India, Cebu Pacific of the Philippines and Jetstar of Australia have also selected new A320-family aircraft over Boeing equivalents. Another planned carrier in India, Kingfisher, also recently selected the A320 over the 737.
Baseler expects the LCC market will develop in Asia, but despite the many start-ups it is unsure of its near-term success given market impediments such as restrictive bilaterals and slot-constrained airports.
BRENDAN SOBIE / YOKOHAMA
Source: Flight International
