Airbus, Boeing Open Paris Air Show Order Bonanza: Garuda Indonesia to buy aircraft from both manufacturers

The Wall Street Journal
By Robert Wall and Rory Jones
June 15, 2015 6:16 a.m. ET


LE BOURGET, France—Airbus Group SE and Boeing Co. kicked off the Paris Air Show on Monday as they combined to win more than 200 jetliner orders before midday.

With its first order, Airbus also introduced a new plane model, the A330-300 Regional, a widebody passenger jet optimized for shorter routes. Saudi Arabian Airlines said it would take 20 of the planes as part of a 50-jetliner order.

The A330-300 Regional, able to carry as many as 400 passengers on flights up to 3,000 nautical miles, is designed to allow airlines transport a large number of passengers on short routes where seating capacity on single-aisle planes isn't sufficient. John Leahy, Airbus’s commercial-aircraft head of sales, said there was “significant market opportunity” for the plane and that Chinese carriers are also likely buyers.

Director General of Saudi Arabian Airlines Saleh bin Nasser Al-Jasser said the plane would allow the carrier “to expand our domestic and regional network and better absorb growing passenger traffic.” The first plane is scheduled to be delivered in 2016.

State-owned airline Garuda Indonesia said Monday it would buy aircraft from both Airbus and Boeing.

Garuda Indonesia said it has struck a deal for with Boeing for 60 aircraft valued at $10.9 billion at list prices. The Asian carrier said it would buy 30 of Boeing’s fuel-efficient widebody 787-9 Dreamliner and a further 30 737 Max single-aisle jets to expand its domestic market and launch new destinations internationally.

“We are concentrating on the most efficient aircraft that can support our business in the future,” Arif Wibowo, president of Garuda, said at a news conference at the Paris Air Show.

Airbus said it also signed a letter of intent with Garuda for 30 Airbus A350 long-haul jets that compete with the Chicago plane maker’s Dreamliner.

“We are concentrating on the most efficient aircraft that can support our business in the future,” Arif Wibowo, president of Garuda said at a news conference at the Paris Air Show.

The 787 will begin delivery to Garuda in 2020 while the 737 Max will hit the airline’s fleet two years later in 2022, Boeing said.

Mr. Wibowo added that the 787-9 would be used to enter the U.S. market, without providing further details.

Boeing also announced that Taiwan’s EVA Airways plans to buy 777 cargo jets with a list price value of more than $1.5 billion, though customers generally get discounts.

Airbus’s also secured a deal from General Electric Co. ’s aircraft leasing arm GE Capital Aviation Services, or GECAS, for 60 A320neo single-aisle jets, doubling its commitment to the new plane now in flight testing.

Separately, Airbus announced that Air Lease Corp. has bought additional planes, adding three A320 single-aisle jets, one slightly larger A321 narrowbody, and one A350-900 long range plane.

Source:  http://www.wsj.com