Airbus, the European aircraft manufacturer, said Monday that Virgin America had signed an order for 60 new single-aisle A320 airplanes. þþThe order includes 30 A320neo, a new version of Airbus’s best-selling airplane that will be equipped with a more fuel-efficient engine. The new airplanes could reduce fuel consumption by 15 percent, according to Airbus. They will be delivered starting in 2016, said John Leahy, Airbus’s top salesman. þþWhile it was made public Monday, Virgin America signed its contract on Dec. 29. This makes it the launch customer for the A320neo. It also means the contract will be logged in Airbus’s 2010 order book, which now totals 644 orders. Airbus said that allows it to nudge ahead of Boeing in 2010, which announced orders of 625 planes, according to Airbus. þþAfter months of hesitation, Airbus announced in November that it would go ahead with its plans to update its A320 airplane, one of the world’s best-selling planes. The A320neo stands for New Engine Option, a reference to a new generation of engines called geared turbo fans that burn less fuel than current engines do. þþThe airplane deal comes as Airbus holds its annual press conference. Airbus has been struggling with delays on its biggest airplane programs, including the A380 double-decker jumbo plane, and its new composite A350 aircraft that it hopes will rival Boeing’s new 787 Dreamliner. þþLast week Airbus announced a record order from IndiGo, a Indian low-cost carrier, which said it would buy 180 A320s, including 150 with the new engine. That deal — which Airbus expects to sign within the next two months — has a list price of $15.6 billion. þþAnalysts, as well as Boeing, have questioned whether Airbus can actually meet the targeted fuel savings with its new plane. They point it will require heavier wings to accommodate the larger engines, for instance. But Mr. Leahy, who had been a strong advocate of the new version, dismissed the criticism. þþ“I am really frustrated that some people in the industry are saying this is not such a good business case,” Mr. Leahy said. “There has never been an aircraft with 15 percent fuel cuts that was not a huge success. We are a little frustrated that our competitor is wringing its hands, wondering whether the business case is worthwhile.” þþVirgin America, which began operations in 2007, has 34 airplanes in operation, with another 17 committed to be delivered this year. It is seeking to expand its network throughout the United States and expects to have a fleet of between 80 and 110 planes by 2016, David Cush, Virgin America’s president and chief executive officer, said. þþThe airline’s new order with Airbus has a list price of $5.1 billion, but airlines typically receive steep discounts from manufacturers, especially for new airplanes. Airbus does not disclose the actual sale price for competitive reasons. þþMr. Cush said that with oil prices rising, airlines needed to consider any technology that could help offset rising costs. He estimated that at oil at $80 a barrel, the annual fuel savings per plane with the new A320neo amounted to $1.1 million. Oil is currently more than $90 a barrel. þþAlong with lower fuel consumption, the airplane would help reduce carbon emissions, Mr. Cush said. þþ“If oil becomes more expensive, this becomes a natural hedge for us,” he said. “If the industry does not clean itself up and is unwilling to invest in these technologies, we will become a pariah, and people will deem travel is evil.” þþ
Source: NY Times
