Poor old Airbus, what does it do? Caught between all too powerful airline customer wishes and the need to protect other investors in the current A380 and A330 models.
There is no secret that Emirates is pushing very hard for an A380-900 with RR engines and the airline is talking to Boeing about the 747-8 to try and force the issue with Airbus, or at least that is what executives are saying to the press. On the other hand, there is Delta, ALC and others pushing for an A330Neo, which is of course a far more likely proposition.
But as mentioned before, the key to the A330Neo and any A380 upscale is price point. The aircraft have to be priced a good margin above current models to protect investors in the same but all the while an A330Neo will need to undercut the 787-10 on purchase price if not running costs also and at the same time will need to offer alternatives to the RR Trent 1000-TEN powerplant, which will only be viable if strong sales can be guaranteed at the outset.
Airbus is wise not to rush into this minefield and its consultations on the A330Neo go on. But as we move towards the Farnborough Air Show, it is clear that much of the news will be dominated by a will they/won’t they debate that will cause worry for many current investors in the A330.
Meanwhile BOCA has won out in the race to sign-up Tata-SIA Airlines for 20 A320 aircraft. The airline is yet to receive its flying permit but has already agreed terms to lease 20 A320s from BOC Aviation with deliveries likely to start around September-October 2014.
Also all should be aware of the recent escalation of the Indian airline price war with SpiceJet today joining in on the action again with fares dramatically reduced on several key routes for forward bookings. One wonders how this can continue.