Malaysian low-cost carrier Air Asia is in talks for a massive Airbus A320NEO order.
CEO Tony Fernandes told reporters in Paris that a planned order for the aircraft would be “not dissimilar” in size to the previous purchase of 175 classic A320s. He cautioned, however, that financial terms of the deal have not yet been agreed on. Virgin America became the first airline to sign a firm order for the A320NEO in January with a commitment for 30 aircraft. Indian low-cost carrier IndiGo wants to buy 180 aircraft, but has not closed a firm order yet.
Airbus expects to collect orders for several hundreds of A320NEOs before the Paris Air Show in June. Demand for the aircraft has exceeded expectations of most analysts and has made sales campaigns for the Bombardier CSeries more difficult. Boeing plans to decide by mid-year what to do with the Boeing 737. The company has recently been leaning toward developing an all-new aircraft to be delivered at around 2020.