AirAsia is considering a double order with Airbus at a good price

FARNBOROUGH, England (Reuters) – AirAsia was discussing the possible purchase of 100 aircraft A321neo additional Airbus (PA:AIR) in parallel to the negotiations on a command expanded A330neo, a-t-on learned from industrial sources.

The ceo of AirAsia, the contractor malaysian Tony Fernandes, could go in next week for the Farnborough air show, where the two parties will attempt to overcome a difficult period in their relationship and agree on all or part of an order complex of single-aisle and long-haul.

It remains to be seen, however, how many AirAsia will be ready to pay because the low-cost airline, the first asian customer of Airbus, could make changes to orders in progress, and shows intractable in the negotiation on the price, said one of the sources.

Another source confirmed that the agreement could include the conversion of a significant number of aircraft already ordered. AirAsia has ordered already 600 aircraft, of which two-thirds remain to be delivered.

Airbus declined to comment and no one could be reached at AirAsia during the weekend.

AirAsia may order up to 100 single-aisle A321neo to a value of $ 13 billion (11 billion euros) at list prices, said two sources confirming information from Bloomberg News.

A third source suggested that the current order could be amended and complemented by other devices.

The addition of 100 A321neo would be a good news but observers are waiting to see if AirAsia will confirm his interest in the A330neo that Airbus has a more difficult sell.

It’s been months that AirAsia, the first asian airline to low-cost, sends conflicting signals about the confirmation or non-confirmation of an order of 66 copies of the version remotorisée of the A330, Boeing (NYSE:BA) would like to replace with its 787 Dreamliner.

According to delegates at the Farnborough international airshow, Airbus is in need of a spotlight on its A330neo and would be delighted to bring Tony Fernandes at the grand rendez-vous world to confirm and expand its control.

Sources had reported that the relations between Airbus and AirAsia had deteriorated to the result of changes at the head of the european airplane manufacturer, and also due to differences over the price and timing of the advances.

Tony Fernandes visited Toulouse recently for negotiations that were not allowed to leave the folder of the impasse, but Airbus still hopes an agreement at Farnborough..

According to financial sources, AirAsia request discounts of up to 60% for the A321neo, and two-thirds for the A330neo, while the standard for this type of contract is rather of the order of 50%.

(Tim Hepher, with contributions by Victoria Bryan, Anshuman Daga and Jamie Freed, Véronique Tison for the French service)