The Latest: Airbus lowers delivery targets for A380

AP News
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Posted: Jul 12, 2016 4:05 PM

FARNBOROUGH, England (AP) — The Latest on the Farnborough International Airshow (all times local):

9:00 p.m.

Airbus sees lower production for its A380, the world's biggest passenger plane.

The company said Tuesday it expects to deliver 12 of the planes per year starting in 2018, down from 27 in 2015.

Airbus has delivered 193 of the A380s, which can carry more than 500 passengers. But demand has been soft lately, and airlines including Air France-KLM indicated they don't plan to take all the A380s they have ordered.

The company said the plane will be needed to handle growing passenger traffic at congested airports. But it said that reducing production is a prudent step in view of current order trends.

Airbus said it reached break-even financially at 27 deliveries last year and hopes to cut production costs to lower its break-even point.

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3:50 p.m.

American Airlines Group Inc. is extending its relationship with Citi and Barclaycard U.S. for its AAdvantage credit card program.

Under the new agreement, Citi will continue offering its lineup of cards to new customers through multiple channels such as aa.com, mobile channels, direct mail, and Admirals Club lounges.

The agreements will also allow Barclaycard US, the payments business of Barclays in the U.S., to offer its cards to new customers in airports and exclusively during flights beginning in January 2017.

Current cardholders will also benefit from a new, long-term exclusive agreement with MasterCard, American Airlines said.

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3:36 p.m.

AirAsia is buying 100 of Airbus' A321neo aircraft, marking the first order by the airline for the model.

AirAsia will have ordered 575 aircraft from the A320 family of models following the deal. Over 170 A320s have already been delivered.

The A321neo will be operated on the company's popular routes and at airports with infrastructure constraints.

"It will allow us to bring higher passenger volumes with the same slots, therefore providing immediate benefits to the airports," said AirAsia CEO Tony Fernandes.

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3:28 p.m.

Indian airline Go Air is in talks to buy 72 of Airbus' A320neo aircraft in a move to expand its network.

The unit of Wadia Group signed a "memorandum of understanding" of with Airbus. Including the latest deal, Go Air has ordered 144 aircraft from Airbus since 2011.

"The new aircraft will help us in unlocking new domestic routes while providing a springboard for continued international network expansion in the years to come." said Go Air CEO Wolfgang Prock-Schauer.

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1:57 p.m.

An unidentified customer in China committed to buying 30 Boeing 737 airplanes, with a value of $3 billion for the order.

The order involves a mix of 737 MAX and next-generation 737 airplanes.

Boeing said it will work closely with the customer to finalize the deal. The order was announced on the second day of the air show at Farnborough, the biennial gathering for the aviation industry outside London.

1:51 p.m.

Boeing said it signed an agreement to sell 10 of its 737-MAX 7 airplanes to Kunming Airlines and is working to finalize the deal.

The "memorandum of understanding", if finalized, would mean that China-based Kunming would become the launch customer in China for the improved 737 MAX 7 airplane.

Kunming Airlines currently serves more than 40 cities across China by operating a fleet of eight 737-700s and 11 737-800s. Shenzhen Airlines is the major shareholder of Kunming Airlines.

1:48 p.m.

Boeing said that Air Lease Corp. ordered six 737-8 Max aircraft, with a total value of $660 million.

Three of the orders are new and three were previously attributed to an unidentified customer.

ALC is an aircraft leasing company based in Los Angeles, with customers worldwide. The company said it already has lease agreements in place with seven different airlines for 737-8 MAX aircraft starting in the fourth quarter of 2017. It also said it has the largest backlog of any Boeing customer, with 180 planes.

1:43 p.m.

Boeing said that the travel and tourism company TUI Group finalized an order for 10 737 MAX's and one 787-9 Dreamliner, valued at $1.4 billion.

The order includes an option for one additional 787-9. TUI Group now has three unfilled orders for 787-9s and 70 orders for the 737-MAX.

Also, TUI group committed to Boeing's GoldCare maintenance coverage for the 737 and 737-MAX fleet.

TUI Group operates six airlines, including TUIfly, Thomson, TUIfly Nordic, Jetairfly, Corsair and TUIfly Netherlands.