AirAsia to Not Accept Jet Deliveries from Airbus This Year

Malaysia’s AirAsia Group stated Wednesday it didn’t intend to take any new aircraft deliveries this year due to the sharp plunge in demand from the coronavirus crisis and was revisiting its order book with Airbus SE.

AirAsia to Not Accept Jet Deliveries from Airbus This Year

Last week Airbus had put six jetliners up for sale after giving up on AirAsia taking delivery of them, based on sources familiar with the matter.

The Asian budget carrier is one of the European manufacturer’s largest clients, with 349 A321neos and 13 A320neos on order which have yet to be delivered, based on the Airbus order ebook.

AirAsia expects to end 2020 with 242 aircraft in its fleet, down one from 2019, Executive Chair Kamarudin Meranun mentioned in a statement.

AirAsia stated it had resumed domestic flights in Malaysia Wednesday and hoped to do so in Thailand, the Philippines and Indonesia in May, subject to approval from authorities.

The airline stated that it had restructured most of its fuel hedges, struck when oil prices had been higher and that it was chopping employee costs, renegotiating contracts and cutting down on non-essential spending to lower expenses by at least 30% this year.

Airbus Wednesday recorded a 49% stoop in Q1 adjusted operating profit to 281 million euros ($304.7 million) as income plunged 15% to 10.631 billion euros amid the gravest crisis the aerospace sector has ever witnessed.

By Luann Reagan

Luann Reagan is a freelance journalist with 18 years of combined experience in the news, communications, copywriting, and marketing. For over a decade, she served as editor for a few local newspapers and has also written for the Associated Press. As a self-proclaimed Tech Evangelist, Luann especially enjoys writing articles for Aerospace & Defence Talks. Currently, Luann contributes articles on overall industry updates.

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