TAA banks on A320neo

Thai AirAsia (TAA) will take delivery of its first updated version of Airbus’s bestselling single-aisle A320 Family jetliner by year-end.

The delivery of the A320neo will mark the start of fleet modernisation by Thailand’s largest low-cost carrier.

On course to have 50 aircraft operating by year-end, TAA aims to have its fleet of A320 Family jets reach 70 by 2020.

Subsequent deliveries will also be A320neos, according to insiders.

The airline recently agreed on the financing of 1.4 billion baht for such aircraft with Krungsri Leasing, a subsidiary of Bank of Ayudhya.

TAA is keen to have the A320neo (the suffix “neo” stands for “new engine option”) to supplement its current fleet of 48 A320 aircraft, which are now referred to as the A320ceo for “current engine option”.

The A320neo incorporates such improvements as aerodynamic refinements, large curved wingtips called “sharklets“and weight savings, which result in 15% less fuel consumption per aircraft, according to European planemaker Airbus, the market leader.

The A320neos due for TAA are among 264 aircraft of this type ordered by the nofrills AirAsia group that includes TAA.

AirAsia signed an agreement with CFM International to supply Leap-X engines to power the aircraft.

The AirAsia group will introduce four A320neo aircraft to its fleet in the second half of this year, with the rest of the deliveries taking place until 2026.

The new A320neos of AirAsia airlines will have six more seats than the existing A320s, which are configured with 180 seats in a single-class layout.

AirAsia is so far the largest A320 Family airline customer in the world with orders for 475 single-aisle aircraft that also include 211 A320ceos.

As of last month, Airbus said it had received total orders for 3,340 A320neos. The first A320neo was delivered to German airline Lufthansa in January this year.