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AirAsia X won't buy 'too expensive' Airbus A350 - co-group CEO

Published 16/04/2018, 09:46
© Reuters. AirAsia Group CEO Fernandes speaks during a news conference at AirAsia headquarters in Sepang
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SINGAPORE (Reuters) - Malaysia's AirAsia X Bhd (KL:AIRX) has no plans to buy the Airbus SE (PA:AIR) A350 widebody jet, the airline's co-group CEO said on Monday, despite the airline having 10 of them on order.

"The A350 is not an aircraft we will buy," AirAsia X co-group CEO Tony Fernandes said in a Facebook (NASDAQ:FB) Live chat from London. "Too expensive. Fares would go up."

AirAsia X, the long-haul arm of AirAsia Bhd (KL:AIRA), placed a firm order for 10 A350s in June 2009. It later ordered 66 A330neos, an updated version of the A330s it has in its current fleet.

The A350-900 has a longer range but also comes with a higher list price of $317.4 million (£222.2 million), compared with the $296.4 million price of the A330-900neo. Airlines typically receive large discounts from the list prices.

The AirAsia group is one of Airbus' largest customers, but it has also been talking to Boeing Co (N:BA) about buying the rival 787-10 jet, according to a source familiar with the discussions.

A final decision on AirAsia X's future fleet is expected later this year, the source said on condition of anonymity. The 787-10 has a list price of $325.8 million.

© Reuters. AirAsia Group CEO Fernandes speaks during a news conference at AirAsia headquarters in Sepang

A spokeswoman for the AirAsia group did not have any immediate comment when contacted by Reuters.

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