DOHA: In 2010, Airbus Group SE (OTCMKTS:EADSY) launched the revamped A320NEO (New Engine Option) single-aisle commercial aircraft. This version attracted higher demand compared to the A320CEO (Current Engine Option). However, recent technical issues with the aircraft engine have delayed the delivery process of the aircraft by a few more months. Airbus A320NEO is equipped with PW1100G engines manufactured by United Technologies Corporation’s (NYSE:UTX) Pratt & Whitney unit. The company faced engine restart issues even during the testing phase. It then had to conduct a few test flights with CFM International built LEAP-1A engines.
The company has received fierce criticism from customers and investors alike because of unsatisfactory performance. Qatar Airways was expected to become the launch customer, but declined the deliveries. Lufthansa Airlines has now agreed to become the launch customer with its A320NEO deliveries due January 25, 2016.
Airbus has so far delivered a total of eight A320NEO units over the past six months, out of the total orders of 3396 as of June 30, 2016. In the same period, the company delivered a total of 138 A320CEO planes.
Following Lufthansa, IndiGo Airlines also received its A320NEO orders on March 18, 2016, while GoAir took the first delivery of the aircraft on June 8, 2016. Last month, Airbus executives reported that the company had solved the engine issues in collaboration with Pratt & Whitney, and the deliveries of the jets with resolved engine issues would start in July.
No new deliveries have yet been reported during the past month. Yesterday, IndiGo Airlines announced it may consider giving Airbus and Pratt & Whitney more time to fix the engines before demanding delivery. Earlier, the airline had placed an order for 430 units of the A320NEO, of which the delivery of 24 was expected by March 2017.
It is possible that IndiGo Airlines will change its first order of 150 units of the A320NEO, to be equipped with CFM International’s LEAP-1A engines to speed up deliveries. Qatar Airways called off its order because of the delay, and high demand and the absence of new jets affected the airline’s capacity growth.
At the Farnborough Airshow, Qatar Airways was reportedly taking interest in Boeing Co’s (NYSE:BA) 737 commercial aircraft following the cancelled order for the A320NEO. However, despite the issues, Airbus received a substantial number of orders for the jets, and surpassed Boeing in terms of total orders at the event.
