Home / Shipping / Aviation/ Airbus sales chief defiant on A330neo demand as Boeing seals new win

Airbus sales chief defiant on A330neo demand as Boeing seals new win


Comments / {{hitsCtrl.values.hits}} Views / Monday, 11 June 2018 00:00

Facebook

 

  • Sales chief says still opportunities out there
  • Airbus has lost contests in US recently

 Sydney (Reuters): The head of airplane sales at Airbus dismissed concerns about a sharp drop in orders for the A330neo jet and predicted European wide-body demand would start to recover this year as rival Boeing extended a series of wins in the lucrative segment.

“The world is still full of opportunities in terms of wide-bodies. We have a lost a couple of campaigns in the West and there are other campaigns around the world. I am not personally in a panicking mode about the A330neo,” Chief Commercial Officer Eric Schulz told Reuters on Monday (4 June).

Speaking on the sidelines of an airlines meeting in Sydney, Schulz declined to give a numerical sales target for 2018 wide-body orders but said, “We will see, I think we will be ok. I can see from the dynamics in the market and what we have in the pipeline and what we have already negotiated.”

The A330neo is a derivative of Airbus’s most-sold wide-body jet, the A330 series, whose fortunes are widely monitored by investors as one of its two main sources of profits and cash.

Airbus has lost a series of US contests for sales of the 250-300-seat A330neo, followed by a decision set to be approved this week by the owners of India’s Vistara to order six Boeing 787s instead of A330neos, two industry sources said. The same airline may expand a leased fleet of A320neos.

Airbus and Boeing declined to comment and Vistara did not respond to a request to comment on the order, reported earlier by Bloomberg News.

Demand for wide-body jets has weakened recently because of oversupply, but Boeing has extended a traditional lead in that part of the market thanks to a spate of orders for its 787 and a rebound in 777 demand, assisted by a recovery in freight demand.

Airbus typically sells 4 in 10 big jets but reaped just 16% of wide-body orders between January and April. Adjusted for cancellations, net orders slumped into negative territory.

Analysts say a US decision to revoke export licences for jets sold to Iran, after pulling out of an international nuclear sanctions deal, could deepen Airbus’s wide-body woes since IranAir’s order for 100 jets had included 28 A330neos.

Schulz said Airbus would not immediately reflect the collapse of the Iran deal in its order book as it uses a grace period for US licences to “study the political situation”.

Still, industry watchers say the European firm has 16 unfilled production slots for A330s in 2019, raising the prospect of further output cuts if it does not win new sales.

Airbus hopes China could be a promising market.

Schulz said one factor weighing on A330neo sales was the relatively young age of many of the previous A330 models in service, meaning some operators were not yet ready to upgrade.

“I believe that especially for people who are operating the A330, the A330neo is a nice and easy transition towards an aircraft that generates very good efficiency,” he said.

The International Air Transport Association (IATA) said on Monday higher fuel prices were supporting new aircraft demand and that the average size of aircraft was rising. Schulz said on the sidelines of IATA’s annual meeting that wide-body jet demand would soon recover to reflect the underlying fundamentals.

“The market is not that fast but I can sense talking to the airlines that within the next 18 months to 2 years we will have much more dynamism in the market,” he said.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Our Cricket Board simply cannot deliver – why not they all quit honourably?

Tuesday, 18 June 2019

“It is necessary, therefore, for the Government to pay serious attention to the doings of Sri Lanka Cricket [board] and take immediate action to lift their game for the progress of our glorious game.” Question for Sri Lanka Cricket (board) Sri La


Yesterday Tamils, today Muslims and tomorrow who?

Tuesday, 18 June 2019

From the time of S.W.R.D. Bandaranaike’s election victory in 1956, one and only one issue had dominated political party campaigns in this country; and that was communalism. The Tamil community was the main focus of these campaigns for over 50 years


Those who go by social proof are easy prey to crafty schemers

Monday, 17 June 2019

Going after social proof Swiss writer and novelist, Rolf Dobelli, in one of the essays in his 2013 book ‘The Art of Thinking Clearly’, has given a fine warning to his readers. He has warned against going by ‘social proof’ or ‘majority view


Poson ponderings on positional power: ‘Authority vested’ vs. ‘authority wasted’

Monday, 17 June 2019

We witnessed a serene Poson Poya, in a far more improved security setting in Sri Lanka. Whilst the Sri Lankan life slowly returning to normal, political fronts do not appear to show the same. Has the political power become the people ‘pava’ (sin)


Columnists More