Air Arabia aims to place an order for around 100 aircraft next year and is negotiating with different plane manufacturers including Airbus, ...
Air Arabia aims to place an order for around 100 aircraft next year and is negotiating with different plane manufacturers including Airbus, Boeing and Embraer, a senior official said on Sunday.
Speaking to media to mark 15th anniversary, Adel Ali, chief executive officer, Air Arabia, said the low-cost carrier could place order with diverse aircraft manufacturers to replace its ageing fleet.
"We have a team which is examining to place an order for aircraft to replace the existing planes in the next few years. We are looking at Airbus A320s, A321, Boeing, C-series and Embraer. We hope to make the decision in 2019. Since the study is looking at fleet replacement, replenishment and expansion as well, so I think we need in the range of 100 and 100-plus aircraft," Ali said during an interview on the sidelines of the anniversary event.
"We are just under 60 planes and by 2025 we will be around 100 aircraft, depending on how and what events unfold in the world."
Saj Ahmad, chief analyst, StrategicAero Research, said Air Arabia has been slow to update its fleet. Given how long Air Arabia has dithered over its fleet replacement plans, having just 6 new leased airplanes does not mean that Boeing, for example, doesn't have a chance.
"Boeing's huge win at flydubai for up to 225 737 Max planes will certainly give Air Arabia food for thought, especially when airplanes like the 737 Max 8 carries more passengers than the A320neo, has better range and lower fuel burn. Embraer and Bombardier do not offer jets sized to match Air Arabia's current A320 fleet so neither of them are likely to win here," Ahmad said in a statement to Khaleej Times.
Ahmad pointed out that there will be many variables which lead to Air Arabia's final selection.
"From purchase price to financing, to product support and maintenance - everything is in play and packaged deals may make the difference in the airline either sticking with Airbus or going over to Boeing. We've seen other low-cost airlines like SilkAir dump their A320s and opt for the 737 Max family, so swapping fleets isn't unusual. And with Airbus' disastrous production problems across the A320 family, deliveries will be heavily delayed, thus impacting Air Arabia's bottom line and on fuel costs while they soldier on with less efficient airplanes," he added.
Air Arabia on Sunday unveiled a new brand identity, derived from the idea of 'Modern Nomads', reflecting the positioning of Air Arabia as an airline of true value that connect with the young, adventurous, and those who are eager to travel, discover new places and collect new experiences.
Air Arabia CEO Ali said Sharjah airport is growing and building a new airport which will raise the capacity from the existing 9 million passengers to 18 million and then to 25 million. This will give the budget carrier another opportunity for growth.
The Sharjah-based airline will receive 5 long-haul aircraft next year which allow it to cater 8-hour flight radius from the UAE.
"We are getting new airplanes early next year with longer range that will open few new markets particularly in Africa and few places in Eastern Europe. The aircraft capability will be just under 8 hours. We have some rights to go to China that we have not exercised; we have got rights to go to Africa where we are not flying due to aircraft capability," he added.
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