AirAsia to halt Airbus deliveries and review orders

AirAsia Group will stop taking deliveries of Airbus jets this year and review its remaining orders as the coronavirus crisis heaps pressure on the Malaysian carrier. The comment from Asia's largest budget airline on Wednesday is the latest sign of pandemic-induced havoc, further denting growth in South East Asian jetliner demand that was already feeling the effects of overcapacity. After years of expansion, AirAsia expects to end 2020 with 242 aircraft in its fleet, down one from last year, Executive Chairman Kamarudin Meranun said. The carrier is one of Airbus's largest customers, with orders for 349 A321neo jets and 13 A320neo planes yet to be delivered to the main airline. They would be worth about $46b at today's list prices, though in practice airlines win discounts above 50% for such large orders, market sources say. AirAsia has ordered a total of more than 660 Airbus jets since switching from a small Boeing fleet more than 15 years ago. But in a rare move, industry sources have told Airfinance Journal and Reuters that Airbus recently put six planes up for auction after giving up on AirAsia taking delivery. The delivery freeze reflects mass groundings of AirAsia jets because of quarantines and travel restrictions, as well as the impact of unfavourable fuel hedges, analysts said.<br/>