Latest news with #aircraftorder
South China Morning Post
6 days ago
- Business
- South China Morning Post
Trump's trade deal prompts Garuda Indonesia to get on board Boeing 737 Max it once shunned
Five months after a Boeing Co. 737 Max aircraft operated by Lion Air crashed into the Java Sea in 2018, Indonesian flag carrier PT Garuda Indonesia tried to cancel its remaining order for the same model. Now, the country is working to revive that deal as it seeks to forge favourable ties with US President Donald Trump's administration. Trump announced in a social media post on Tuesday that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes. While Trump did not disclose a buyer, Garuda CEO Wamildan Tsani Panjaitan had previously said he is in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models. The accord points to the intertwined political and economic interests whenever Trump negotiates with foreign leaders. The US president has previously announced aircraft purchases while visiting countries including Qatar, or when he has hammered out trade agreements with the likes of Vietnam or the UK. In Indonesia's case, Trump said he got the deal over the line in direct negotiations with President Prabowo Subianto during a phone call. The dilemma for Boeing is how to restore or expand the existing 49-jet Max order without leaving Garuda in a financial and strategic bind. The airline is already having trouble keeping its existing fleet airworthy, with at least 15 jets grounded as recently as May as it struggles to make maintenance payments.
Bloomberg
6 days ago
- Business
- Bloomberg
Trump's Trade Deal Pushes Garuda to Learn to Love 737 Max Again
Five months after a Boeing Co. 737 Max aircraft operated by Lion Air crashed into the Java Sea in 2018, Indonesian flag carrier PT Garuda Indonesia tried to cancel its remaining order for the same model. Now, the country is working to revive that deal as it seeks to forge favorable ties with US President Donald Trump's administration. Trump announced in a social media post on Tuesday that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes. While Trump didn't disclose a buyer, Garuda Chief Executive Officer Wamildan Tsani Panjaitan had previously said he's in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models.
Malay Mail
05-07-2025
- Business
- Malay Mail
AirAsia signs RM51b deal for 50 Airbus planes, with option for 20 more, eyes first European route this year
KUALA LUMPUR, July 5 — AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus 321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd chief executive officer Tan Sri Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MoU) with Airbus in Paris today for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which are targeted to serve Central Asia, the Middle East and Europe, among others. 'This will probably make us one of the largest users of the XLR aircraft, the 321XLR, and is really the next stage of our transformative growth in terms of creating the world's first low-cost multihub network carrier. 'This will enable us to fly to Europe, and we're hoping to launch our first European flight this year,' he said during Capital A's virtual media briefing on Friday, in conjunction with the agreement signing ceremony. The agreement was signed between Fernandes and Airbus Commercial Aircraft chief executive officer Christian Scherer, witnessed by Prime Minister Datuk Seri Anwar Ibrahim. Fernandes said the next-generation A321XLRs will operate alongside AirAsia's all-Airbus fleet of A320 Family and A330 aircraft, and aims to carry 150 million guests annually by 2030, reaching a cumulative total of 1.5 billion guests since inception. He said AirAsia plans to finance the aircraft order through bank leases. Fernandes also confirmed that the group is set to announce another aircraft order next month, but declined to provide further details. Meanwhile, he said the group is working to issue its first bond by October this year. 'This is the first time in our history that we've been rated by international credit rating agencies,' he noted. 'As interest rates begin to moderate, which I'm hopeful will happen soon, it's only natural for us to return to our traditional model of owning aircraft. 'Previously, we shifted from the financing markets to operating leases due to high interest rates and strong capital availability in the leasing space. We're now reassessing that strategy,' he said. On Capital A's proposed regularisation and restructuring plan, Fernandes said the company is expecting to resubmit the decision letter to Thailand's Securities and Exchange Commission within the next week or two. 'Once we dispose of the aviation business, Capital A will effectively exit Practice Note 17 (PN17),' he said. He added that six of the group's non-airline businesses, namely Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, OTA, BigPay, Santan, and AirAsia Brand Co (ABC) are currently exploring the possibility of a dual listing in Hong Kong. As for Capital A, it is also considering a dual listing and independent capital raising. However, Fernandes said 'the AirAsia Group itself will not be listed in Malaysia'. — Bernama
Zawya
02-06-2025
- Business
- Zawya
Ethiopian Airlines considering order for at least 20 regional jets, CEO says
Ethiopian Airlines is looking to order at least 20 regional or small narrowbody jets as it moves to expand its domestic fleet and replace some ageing aircraft, the airline's chief executive told Reuters on Monday. "We are evaluating three aircraft models, the E-2 from Embraer, the A220 from Airbus, and the 737 MAX 7 from Boeing," CEO Mesfin Tasew Bekele said in an interview. The final order quantity will depend on the type chosen, he added. Boeing's 737 MAX 7, which has a larger seating capacity and sits at the bottom of a larger category than the Airbus A220 and Embraer E-2, is yet to be certified. Africa's largest carrier is experiencing strong travel demand but has been constrained by jet delivery delays and the grounding of some aircraft due to engine shortages stemming from supply chain disruptions. "We are receiving airplanes from both Boeing and Airbus, but deliveries have been delayed, some by three months, some six months, some more," Bekele said on the sidelines of an annual IATA meeting of global airline leaders. The company is also in talks with lessors to bring onboard some jets to ease capacity constraints. The airline is among several facing grounded aircraft due to bottlenecks in engine maintenance plants. Ethiopian has three Boeing 787 widebody jets grounded due to a shortage of Rolls-Royce engines, with five turboprop aircraft grounded due to a shortage of RTX's Pratt & Whitney engines. "Normally engines were supposed to be repaired and returned in three months typically, but now it takes six months or even more to get them repaired and returned," Bekele said. (Reporting by Shivansh Tiwary in New Delhi. Editing by Jamie Freed and Mark Potter)
Free Malaysia Today
02-06-2025
- Business
- Free Malaysia Today
Air India in talks for major new narrow-body jet order
Getting new planes is crucial for Air India, which has suffered from years of under-investment under government ownership. (AP pic) NEW DELHI : Tata Group's Air India is in talks with Airbus and Boeing for a major new aircraft order, including some 200 extra single-aisle planes, topping up a mammoth deal in 2023 as the former state carrier pursues a multi-billion-dollar revamp, industry sources said. The order discussions, which two of the sources said could involve hundreds of airplanes in total spread across various sizes, expand on previously reported discussions for a further batch of large wide-body aircraft, they told Reuters. 'In those talks, Boeing is edging forward as the front-runner to sell more of its 777X jets,' two of the sources said. Air India, Boeing and Airbus all declined to comment. Word of a potential new blockbuster order from India's flag carrier emerged as global airline bosses gathered in the world's fastest-growing aviation market for a Delhi industry summit to be addressed by Indian Prime Minister Narendra Modi today. Air India placed a then-record order for 470 planes from both suppliers in 2023 and another 100 Airbus jets last year. The back-to-back plane orders come at a time when aircraft manufacturers are scrambling with supply chain issues leading to severe delays in aircraft delivery and a looming jet shortage. Getting new planes is crucial for Air India, which has suffered from years of under-investment under government ownership and is now undertaking an ambitious modernisation plan to recapture market share lost to global rivals. One of the sources said the potential new narrow-body jet order provisionally involved 200 aircraft, while two others estimated the volume in the hundreds. The timing of any deal was not immediately clear and one source said pricing could be a stumbling block as Air India seeks to emulate deals by India's largest carrier IndiGo, which announced new partnerships and a top-up Airbus order yesterday. Multi-billion-dollar aircraft orders typically take months of closely held talks to negotiate, with any Boeing and Airbus components usually being announced separately. India's aviation market is expanding at some 7% a year, according to Airbus forecasts. However, analysts say its growth remains hampered by weak infrastructure, especially as it looks to connect hinterlands to bigger cities. On the eve of the airline meeting in the Indian capital, the International Air Transport Association of 300 global carriers said the country's airlines were poised to demonstrate continued rapid growth, clouded by expensive fuel costs and high taxes.
