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Air France-KLM is deep in negotiations with Airbus SE, Boeing Co. and engine-makers vying for a massive jet order and could split the narrow-body purchase between suppliers, Chief Executive Officer Ben Smith said. The deal will include at least 80 firm orders and 60 to 80 options, with a decision coming soon, Smith said at an event Wednesday in Paris. 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. “We are hoping to make a decision in the next months,” Smith said. The CEO is renovating the debt-laden carrier’s fleet even as the coronavirus pandemic is still depressing travel demand. With airlines under pressure to improve fuel efficiency and lower carbon emissions, Smith said he’ll also try to simplify more of the fleet, with aging Airbus A330s and A320/321 single-aisles at Air France coming up for replacement over the next few years. The company is still weighing options to shore up its balance sheet, he said. The narrow-body contest would appear to favor Boeing, since KLM and Transavia both use its 737 single-aisle family, and it’s more expensive to train, maintain and operate a mixed fleet. <br/>

Air France took delivery of its first compact Airbus A220 jetliner on Tuesday, pledging greater comfort and lower emissions on short routes as its Franco-Dutch parent pushes ahead with a broader fleet shake-up to streamline costs. The French airline, part of the Franco-Dutch Air France-KLM group, said the 148-seat, Canadian-designed jet would reduce fuel consumption and emissions by 20% after entering European service with a flight to Berlin on Oct 31. Air France ordered 60 of the planes in 2019, with options for at least 30 more, to replace the smallest members of the Airbus single-aisle portfolio, the A318 and A319. The unveiling illustrated a shift of emphasis from the world's largest jets to some of the smallest as airlines play up the lower cost and environmental benefits of light new models. The audience of 300 guests including politicians gathered in a hangar originally built for the Airbus A380 superjumbo, once the flagship for Air France and other major long-haul carriers but whose retirement was accelerated by the coronavirus crisis. In a reminder of the see-saw strategies in the $150b jet industry, a disused A380 sat ignored on the tarmac outside.<br/>