Aviation Capital Group (ACG), a wholly-owned subsidiary of Tokyo Century Corporation, on Monday placed firm orders for 20 of Airbus’s A220 narrowbodies. The deal, announced on the eve of the Singapore Airshow, follows the leasing group’s order for 40 A320neos, including five A321XLR models, placed in December.
According to Steven Udvar-Hazy, ACG’s OEM relations and market development senior vice president, the A220 will appeal to airlines on the basis of its reduced carbon footprint, passenger comfort, and competitive operating economics. The company, part of Tokyo Century Corporation, has not said when it intends to start taking deliveries of the aircraft, which is powered by Pratt & Whitney’s PW1500G turbofans.
According to Airbus, the Asia-Pacific region will need 17,620 new aircraft by 2040 as the retirement of older equipment accelerates, driven by decarbonization commitments. The European airframer also pointed to demand factors such as an anticipated doubling in air freight volumes, which are rising at a rate of 3.6 percent each year, and projected annual passenger growth of 5.3 percent.
Of the total new sales now forecast by Airbus for Asia-Pacific countries, the company expects the market to demand 13,660 A220 and A320 narrowbodies, 2,470 mid-sized aircraft, and 1,490 widebodies. The region, where 55 percent of the world’s population resides, will account for as much as 42 percent of all new aircraft sales over the next two decades, according to Airbus.
“We are seeing a global recovery in air traffic and as travel restrictions are eased the Asia-Pacific region will become one of its main drivers again,” said Airbus chief commercial officer Christian Scherer. “We are confident of a strong rebound in the region’s traffic and expect it to reach [pre-pandemic] 2019 levels between 2023 and 2025.”
The Airbus order book gained another boost on February 14 with a contract with Kuwait’s Jazeera Airways for 20 A320neos and eight A320neos. The deal confirms a memorandum of understanding signed during the Dubai Air Show in November 2021.