Air New Zealand has yesterday awarded their domestic fleet replacement to Airbus. The carrier has decided on 14 A320's to replace 15 Boeing B737-300's for their domestic fleet.
The first aircraft in this order will arrive in January 2010 and deliveries will occur over a period of 5 years.
The order for Airbus will complement the existing 12 A320 Air New Zealand frames already in the carrier's fleet. The Air New Zealand Board indicated that excellent (unspecified) discounts were obtained on the $1 billion list price purchase .. and that the move towards complete domestic fleet 'commonality' will produce major savings for the carrier, with the A320 proving to be the most fuel-efficient frame for their needs.
Surprising (?) that Boeing let this one slip. Fresh new orders aren't too thick on the ground right now .. and NZ has always traditionally been a Boeing customer. This leaves Boeing with just the B777 and B787 orders for the NZ fleet - and the B787's have suffered major ongoing delays.
On the other side of the world, it also appears that Ryanair is not too happy with the effort being expended by Boeing in relation to pricing, in respect of the additions to the Ryanair fleet that are currently under discussion. Is the old Boeing 'arrogance' returning ? Or is Airbus simply 'buying' market share ?
One thing that becomes demonstrable with the Air New Zealand order is that Airbus is rapidly increasing it's marketshare and footprint in the Australia / New Zealand / Asia market. Airbus has now infiltrated the JQ, NZ, TT market in Australia / New Zealand .. and is seeing the same expansion in much of South East Asia.
Full Version: NZ: Air New Zealand Replaces Boeing With Airbus
Boeing in stu*id way is losing some of their best /loyal 737 customers. This is another example after AirAsia & Saudi Arabian Airlines
QUOTE (kimshep @ Nov 4 2009, 01:18 PM) 
Surprising (?) that Boeing let this one slip. Fresh new orders aren't too thick on the ground right now .. and NZ has always traditionally been a Boeing customer. This leaves Boeing with just the B777 and B787 orders for the NZ fleet - and the B787's have suffered major ongoing delays.
On the other side of the world, it also appears that Ryanair is not too happy with the effort being expended by Boeing in relation to pricing, in respect of the additions to the Ryanair fleet that are currently under discussion. Is the old Boeing 'arrogance' returning ? Or is Airbus simply 'buying' market share ?
On the other side of the world, it also appears that Ryanair is not too happy with the effort being expended by Boeing in relation to pricing, in respect of the additions to the Ryanair fleet that are currently under discussion. Is the old Boeing 'arrogance' returning ? Or is Airbus simply 'buying' market share ?
Well with Airbus already having their foot in the door at NZ, Boeing not only would have had to at least match the price, but then also have to discount even deeper to offset having to add spares, training, and other ancillaries for the 737NG that NZ already has on hand for their A320 fleet. At that point, Boeing could be looking at either a negative revenue deal or one so low that it was not worth sacrificing slots that could be used for a better deal from another customer. So letting Airbus have it strikes me as prudence, not arrogance and if they had gone revenue negative just to land the deal, that truly would be "buying market share" on their part.
As for FR, even with the sweet deal they're said to have on their remaining options, when you factor in price escalation clauses on those as well as the additional 120+ new orders they would need to place a 200 frame order, they could end up spending the same amount of money they did for their first 200 planes, but only getting around 175 this time. So they're probably hoping Boeing is so desperate for orders they'll agree to match the 2005 price of $29 million a frame.
And since Airbus has already told FR they can take a long walk off a short pier before they get an A320 for that price, if Boeing is doing the same, I guess both of them are guilty of hubris.
Some interesting scuttlebutt not often seen so prominently discussed publicly !
Courtesy : The Australian under Fair Use policy
Yes, I know that it's a 'rumoured' 50% .. but that does not seem 'excessive' .. given the recent spate of similar discounts over the past 2-3 years and the current poor sales environment. Does this really mean that Boeing couldn't have fought just that little bit harder ?
Courtesy : The Australian under Fair Use policy
QUOTE
Airbus Knocks 50pc Off NZ Deal
Steve Creedy From: The Australian November 05, 2009 7:16PM
AIRBUS was coy this week about suggestions that it had given Air New Zealand a 50 per cent discount on the $US1.08 billion ($1.19bn) list price of its 14 A320s to seal the deal.
Reports in New Zealand quoted Macquarie Equities analysts as saying the Kiwi carrier was likely to have paid just $US540 million for the planes.
The 14 A320s to replace 15 Air New Zealand Boeing 737-300s are destined for Air NZ's domestic routes, joining 12 A320s already deployed on short-haul international routes. The first plane is expected to arrive in early 2011.
Air NZ also has purchase rights for another 11 planes, including the possibility of moving to the bigger A321.
The airline said this week it had bought them at a discount "that reflects the current market conditions" but did not quantify its discount.
Air NZ group general manager short-haul airline Bruce Parton said: "The industry is at the bottom of a deep cycle so demand for aircraft is limited, creating favourable conditions for buyers with strong balance sheets like Air New Zealand."
Both aircraft manufacturers are under pressure to get orders on the book and the Air NZ competition was hard-fought.Airbus chief operating officer customers John Leahy said he had started out the year saying Airbus would get 300 orders worldwide, but it only had about 150 so far.
Asked what discounts airlines were seeking at the moment, he said: "All they can get."
Mr Leahy said the analysts would not know what discount the planemaker gave Air NZ because of confidentiality agreements.
"But I do know, as every car dealer knows, that every customer got the best deal that was ever had," he said.
Steve Creedy From: The Australian November 05, 2009 7:16PM
AIRBUS was coy this week about suggestions that it had given Air New Zealand a 50 per cent discount on the $US1.08 billion ($1.19bn) list price of its 14 A320s to seal the deal.
Reports in New Zealand quoted Macquarie Equities analysts as saying the Kiwi carrier was likely to have paid just $US540 million for the planes.
The 14 A320s to replace 15 Air New Zealand Boeing 737-300s are destined for Air NZ's domestic routes, joining 12 A320s already deployed on short-haul international routes. The first plane is expected to arrive in early 2011.
Air NZ also has purchase rights for another 11 planes, including the possibility of moving to the bigger A321.
The airline said this week it had bought them at a discount "that reflects the current market conditions" but did not quantify its discount.
Air NZ group general manager short-haul airline Bruce Parton said: "The industry is at the bottom of a deep cycle so demand for aircraft is limited, creating favourable conditions for buyers with strong balance sheets like Air New Zealand."
Both aircraft manufacturers are under pressure to get orders on the book and the Air NZ competition was hard-fought.Airbus chief operating officer customers John Leahy said he had started out the year saying Airbus would get 300 orders worldwide, but it only had about 150 so far.
Asked what discounts airlines were seeking at the moment, he said: "All they can get."
Mr Leahy said the analysts would not know what discount the planemaker gave Air NZ because of confidentiality agreements.
"But I do know, as every car dealer knows, that every customer got the best deal that was ever had," he said.
Yes, I know that it's a 'rumoured' 50% .. but that does not seem 'excessive' .. given the recent spate of similar discounts over the past 2-3 years and the current poor sales environment. Does this really mean that Boeing couldn't have fought just that little bit harder ?
QUOTE (kimshep @ Nov 6 2009, 07:41 PM)
Yes, I know that it's a 'rumoured' 50% .. but that does not seem 'excessive' .. given the recent spate of similar discounts over the past 2-3 years and the current poor sales environment. Does this really mean that Boeing couldn't have fought just that little bit harder?
It's not "excessive", but it is around 10% higher than what one would consider "normal".
However, as to why Boeing didn't fight for this order, Virgin Australia is in the final stages of placing a 70-frame order with Boeing for six 77Ls to start non-stop SYD-JFK and PER-LHR in addition to multiple score of 737-800 and 737-900ER. So maybe Boeing figured a deal for 14 737-800s that would have to be over half-off just wasn't worth their time.
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