“Such a significant order from a great airline like United underscores that the A321neo offers unmatched capabilities, operating economics, and passenger friendliness,” said Christian Scherer, Airbus Chief Commercial Officer and Head of International. “No other aircraft can do what the A321neo can do, and the Airbus team is most gratified by United’s strong affirmation of its premium status. The A321neo will complement United’s future A321XLR aircraft, together creating a privileged segment on its own.”
The A321neo is in incredibly high demand globally is that the aircraft provides superior environmental performance with the lowest CO2 emissions per seat in its class. Airbus says the A321neo’s lower carbon footprint will support United along its journey to reduce the airline’s CO2 emissions 100% by 2050.
United’s A321neo aircraft will feature Airbus’ Airspace cabin design, which brings the following passenger-pleasing enhancements: Unique welcome and customisable hero lighting (which helps reduce jet lag); new slimmer sidewall panels for extra personal space at shoulder level; better views through the windows with their redesigned bezels and completely integrated window shades; the latest full LED lighting technologies; the largest overhead bin in class (very important in today’s domestic travel market) and new lavatories with hygienic touchless features and antimicrobial surfaces.
A significant number of the newly-ordered aircraft will be produced at the Airbus US Manufacturing Facility in Mobile, Alabama. Globally, as of the end of May 2021, the A320neo Family had achieved 7,400 firm orders from 121 customers.
Airbus’ single-aisle, long-range portfolio includes the A321neo (new engine option aka “NEO”) — which first flew in February 2016 — has a range of approximately 3,700 nautical miles. It’s also capable of flying transatlantic between Paris and New York in an all-Business Class configuration — but most airlines are using the jet for mid-haul routes. Airlines are still able to place orders for the jet. The A321LR (long-range) — which first flew in January 2018, has a range of approximately 4,000 nautical miles, and can fly from London to New Delhi non-stop. It’s in service with multiple airlines, including TAP Air Portugal, Aer Lingus, Kazakhstan’s flag carrier Air Astana, and Scandinavian Airlines. And finally, the A321XLR (extra long-range)— airlines including American Airlines, United, Qantas and Air Arabia are set to take the jet once it enters commercial service.
Also in the last week, Hong Kong’s Cathay Group has announced the purchase of an additional 32 Airbus A320neo Family aircraft as it continues to invest in expanding and modernising its fleet. The agreement doubles the Cathay Group’s total orders for the A320neo Family to 64, of which 13 have already been delivered. The 32 additional aircraft will comprise both the A321neo and A320neo which will join the fleets of Cathay Pacific and HK Express. They will principally serve destinations in the Chinese Mainland and elsewhere in Asia.
Airbus Chief Commercial Officer and Head of International, Christian Scherer said: “Cathay is one of the world’s leading airline Groups and we are proud to be part of its recovery and growth plan.”
“Operating out of the Cathay Group’s base at the heart of Asia, the A320neo family will enable it to expand its services across the region with a most efficient single aisle fleet and a positive passenger comfort differentiation. With a significant reduction in fuel consumption, the aircraft will also bring an immediate contribution to the Cathay Group’s sustainability goals.”
Elsewhere in the aviation world, Scandinavian airlines SAS chose Air France-KLM and private equity firm Castlelake LP to anchor a $1.18bn investment in the bankrupt Scandinavian flag-carrier, ending a five-month chase for new capital. Air France-KLM will invest up to $144.5mn and receive as much as a 19.9% of SAS, with the option to take a controlling interest after two years under certain conditions, according to a statement on Tuesday.
The deal promises to further consolidation of Europe’s aviation industry around Air France-KLM and two other major carrier groups, Deutsche Lufthansa AG and IAG SA. IAG is taking over Spain’s Air Europa, while Lufthansa has agreed to buy part of Italy’s state-owned ITA Airways, the successor to Alitalia.
An alliance with SAS will strengthen Air France-KLM’s position in the Nordics, source of a reliable stream of active, adventurous travellers, even as it targets Portugal’s flag carrier TAP to the south. As part of the deal, SAS will become the first founding member to exit Star Alliance to eventually join the SkyTeam union co-founded by Air France.
“This project confirms Air France-KLM’s ambition to play an active role in the well-expected consolidation in Europe,” the Franco-Dutch airline group said in a statement. The plan to ally with SAS “has no impact on the group’s strong interest in TAP and its ability to participate in the privatisation process.”
The funding package includes equity, convertible debt, and the refinancing of a bankruptcy loan by Castlelake. The government of Denmark and Denmark’s Lind Invest ApS are also part of the new ownership group.
The author is an aviation analyst. Twitter handle: @AlexInAir
