Airbus has won a record-breaking order for 200 of its A320neo jets from AirAsia, capping a week where it has trounced rival Boeing in the fierce competition for plane contracts. The massive contract is a show of force from Europe's Airbus as it battles Boeing in the market for single-aisle jets - currently its A320 versus Boeing's 737 - which is expected to be worth $2 trillion over the next 20 years.
The A320neo is a version of Airbus's best-selling 150-seat passenger jet offering fuel savings with new engines from 2015 and will heap pressure on Boeing to take a decision to either rework its current offering or come up with something new. The deal wrapped up a frenetic biennial air show, which demonstrated a shift in the balance of power in the industry. AirAsia and IndiGo are now Airbus's first and second largest airline customers, lagging only the US leasing giants ILFC and GECAS, and pushing Lufthansa into third place as an Airbus operator by fleet size.
--- Largest ever order for A320 family aircraft
As champagne and calculators all but ran out, industry records were sent clattering like an airport departure board. The AirAsia order eclipsed a $16 billion order for 180 aircraft from India's Indigo, sealed on Wednesday, as the biggest ever civil aircraft order by the number of planes.
It was the second time in as many days that an Asia low-cost carrier had broken that record, adding to evidence of a multi-speed recovery that has seen Asian economies plan for frenetic transport growth, especially in the low-cost sector. AirAsia chief executive and Formula One boss Tony Fernandes described a "remarkable ride" in the 7 years since taking a tiny Malaysian carrier and transforming it into Airbus's largest airline-operated fleet with 375 aircraft delivered or on order.
And although officially the airline is pausing for breath after placing the largest order by volume, sources close to the deal said that it left the door ajar to a new spurt in the Asian economy with the eventual inclusion of another 100 jets. Shares in Airbus parent EADS bucked a weaker stock market on Thursday and rose over 1.6 percent to 22.2 euros.
Another low-cost airline, India's GoAir, confirmed a previously announced order for 72 A320neo aircraft. Boeing has said it will make the strategy decision affecting airlines and its suppliers by around the end of the year, and has vowed not to base its thinking on what Airbus does. Boeing said this week it would not be surprised to see Airbus approaching its customers to try to flaunt the A320neo. Airbus reported orders for 910 aircraft worth $88 billion at list prices. Boeing announced 141 planes worth $22.5 billion.
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