Engine maker poised to power low-cost carrier's A320s as it aims to hit back at IAE in region and expand market share
Malaysian low-cost carrier AirAsia has declared CFM International the frontrunner in the contest to power its fleet of up to 80 Airbus A320s.
Boeing 737-300 operator AirAsia, which on 17 December signed a memorandum of understanding with Airbus for 40 A320s plus 40 options, says an engine selection is to be announced in January. Industry sources say the CFM56 has already been chosen but AirAsia insists it is yet to make a selection. Chief executive Tony Fernandes says, however, that CFMI is the frontrunner over the International Aero Engines V2500.
The sources say CFMI has been particularly aggressive in the competition as it is seeking to expand its market share in Asia-Pacific and win back low-cost airline business that has been going to IAE in the region and elsewhere.
The V2500 turbofan has been chosen as the powerplant in most of the recent A320 lease and purchase deals in Asia-Pacific, including at Qantas Airways subsidiary Jetstar in Australia and all three of the new carriers that have been launched in Singapore this year - Jetstar Asia, Tiger Airways and Valuair. Indian low-cost carrier Air Deccan, which has begun adding A320s on lease and purchase arrangements, also selected the V2500.
CFMI won a recent contest in the Philippines involving Cebu Pacific, which ordered A319s to replace its McDonnell Douglas DC-9s. It has also been securing follow-on orders from A320 customers in China.
AirAsia, the most successful low-cost carrier in Asia, selected the 180-seat A320 over Boeing's 737-700 and 737-800, which are powered exclusively by the CFM56-7.
Deliveries are to start in January 2006 at a rate of one a month, progressively replacing 24 148-seat 737-300s. Five are in service with Bangkok-based associate Thai AirAsia and one is with new Jakarta-based Indonesian associate AWAIR.
Boeing had called the AirAsia contest "critical" as Airbus has won every low-cost airline competition in Asia over the past year.
NICHOLAS IONIDES / SINGAPORE
Source: Flight International
