Air France-KLM mulls splitting huge order for narrow-body jets

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Air France-KLM mulls splitting huge order for narrow-body jets
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Negotiations with Airbus, Boeing and enginemakers include at least 80 firm orders and 60 to 80 options

Negotiations with Airbus, Boeing and engine makers include at least 80 firm orders and 60 to 80 optionsAir France-KLM is deep in negotiations with Airbus, Boeing and engine makers vying for a huge jet order and could split the narrow-body purchase between suppliers, CEO Ben Smith says.

Air France-KLM said in July that it was seeking 160 single-aisle jets for the Transavia discount division and European operations at Dutch arm KLM. The contest pits Boeing’s 737 Max against the Airbus A320neo series.The CEO is renovating the debt-laden carrier’s fleet even as the coronavirus pandemic is still depressing travel demand.

However, some analysts have suggested Airbus may have an edge, given the French state’s role as a top shareholder in both the airline and the Toulouse-based aircraftmaker. Air France-KLM owes its survival to successive bailouts from the French and Dutch governments that have left it with a heavy debt burden.“It’s not necessary to have one supplier,” he said. “With an order of a minimum of 80 planes, this gives us the possibility to have this option if it makes sense.

The airline is still interested, and a higher-capacity A220 could factor into the A320 and A321 replacement plans coming later, he said.

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