Airbus re-sells 6 jets built for AirAsia, denting surplus (updated)

Air Asia Co

27/11/2020 17:15

* Jets are part of surplus left idle due to pandemic
    * A321neo jets are maintaining value - European source

 (Adds details, background)
    PARIS, Nov 27 (Reuters) - Airbus  AIR.PA  has found homes
for six A320neo-family aircraft rejected by one of its largest
customers, Malaysia's AirAsia  AIRA.KL , as it makes further
progress in reducing a surplus of jets left by the coronavirus
crisis, industry sources said.
    The fate of the jets was under scrutiny as they became an
emblem of pandemic-induced problems in the aerospace industry
coupled with a chill in ties between two of its major players.
    In an unusually semi-public rift as the crisis deepened,
Airbus in April placed six jets it had built for AirAsia on sale
by tender after the carrier halted taking jets.  urn:newsml:reuters.com:*:nL8N2C8228
    It has now found alternative homes, with the last to be
handed to its new operator this month, a European industry
source told Reuters. Airbus provided no comment.
    Airbus has been steadily increasing deliveries as it strikes
deals with airlines to reschedule deliveries or store jets.
    It said last month it had reduced an overhang of jets that
it had been unable to deliver during the crisis by 10 units to
135 jets. The redeployment of AirAsia aircraft is expected to 
trim the surplus further as deliveries top output in November.
    Airbus is seeing strong demand, relative to the rest of the
battered sector, for its A321neo jet and the aircraft has
broadly sustained its value, the European source said. It is
sticking with plans to increase output of the single-aisle jets.
    The A321neo competes with the two largest version of the
Boeing  BA.N  737 MAX which won approval last week to re-enter
service after a 20-month grounding in the wake of two crashes.
    Boeing is expected to sell dozens of 737 MAX whose buyers
had walked away during the grounding, raising concerns about
price pressure across the industry though Airbus has signalled
that it will try to hold the line on the best-selling A321neo.
    Doubts however remain over demand for a larger jet, the
A330neo, whose largest customer, AirAsia's long-haul unit Air
Asia X  AAX.KL , is seeking new funding to survive.  urn:newsml:reuters.com:*:nL1N2I50P7
    AirAsia said in April it would stop taking deliveries of any
Airbus jets this year and review remaining orders.

 (Reporting by Tim Hepher, editing by Louise Heavens and Elaine
Hardcastle)
 ((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters
Messaging: tim.hepher.thomsonreuters@reuters.net))