The Air France-KLM group announced its intention to order 50 Airbus A350 long-haul jets as part of its strategy to update its long-haul fleet. The group also has the option to buy 40 more, making this its largest wide-body aircraft purchase.
What’s in the Deal?
The board of Air France-KLM approved the multi-billion-dollar deal, which includes both A350-900 and A350-1000 models. These aircraft are set to be delivered between 2026 and 2030. CEO Ben Smith mentioned the ongoing Ukraine war sanctions and the ban on Russian overflights as factors that played into the decision.
Why Airbus Over Boeing?
Air France-KLM had considered both Airbus and Boeing for this large order. The airline needed to replace its older Airbus A330 jets and most of its Boeing 777s. After evaluating factors like range, size, and cost, the group chose Airbus. The A350 models offered advantages in either range or size compared to their Boeing 787 counterparts. Ben Smith also noted that the larger Boeing 777X was not yet certified and wouldn’t be available in time.
The deal offers Air France-KLM the flexibility to allocate the new aircraft based on market or regulatory conditions. This could include shifting jets to other carriers it might acquire in the future. The group is among the potential buyers for Portugal’s TAP, which is up for privatization. The deal also allows for the possibility of moving capacity away from Amsterdam’s Schiphol Airport, where the airline has been facing flight restrictions.
A Continuation of Fleet Renewal
Since Ben Smith joined the group from Air Canada in 2018, Air France-KLM has been working on renewing and simplifying its large fleet. This new purchase comes after Airbus lost an order from British Airways owner IAG due to a disagreement over support prices with A350 engine supplier Rolls-Royce.
Air France-KLM has made a significant move to update its long-haul fleet by ordering 50 Airbus A350s, with an option for 40 more. The aircraft will be delivered between 2026 and 2030, and the deal is worth several billion dollars. The group chose Airbus after considering various factors, including the range and size of the aircraft as well as geopolitical issues. This purchase is part of the group’s ongoing efforts to renew its fleet and offers the flexibility to adapt to future market and regulatory conditions.
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