Story ID: 
Airbus Turns Attention to ACJ320neo Sales
By: Vladimir Karnozov
Caption: Russia and Saudi Arabia will eventually clamor for the new model, Airbus believes.
Word Count: 550
With eight sales already won this year, Airbus Corporate Jets can afford to arrive in style this week at the Russian Business Aviation Exhibition (RUBAE) at Moscow-Vnukovo Airport. The manufacturer flew in a 19-seat ACJ319 in MJet colors to display at the event. “We are never shy to show this product," ACJ president Benoit Defforge told AIN. There are 120 aircraft on the A320ceo platform now in service worldwide, he added.

And yet, his team marketing efforts are now focused on the next-gen platform. Defforge feels sad about not being able to bring a neo to RUBAE 2019, but he hopes a show debut isn’t far away. Delivered green in February, the first ACJ320neo is now being outfitted with a VIP interior, with service entry expected by year-end. Since inclusion of an ACJ on the A320neo platform in the company’s portfolio in 2015, Airbus has won orders for 15 such aircraft, including four this year.

Today, most of the 30 ACJs flying in the CIS are on the A320ceo platform, the more recent shipment taking place last year to Moscow-based Meridian charter operator. ACJ commercial vice president Chadi Saade promises the next delivery into the CIS will take place “within the next 20 to 24 months."

Do the owners consider conversion to the newer neo platform? “Yes, there is some interest in our new product. Orders are just a question of time," he said. But it is “somewhat premature” to speak of a massive migration. “It is also related to the age of the current fleet. Most of the ACJ320 family aircraft [in CIS] are relatively young for their owners to seek an immediate replacement. Typically, an ACJ owner stays with its aircraft for eight to 10 years before replacing it with a newer one."

Airbus is also optimistic about the same issue for Saudi Arabia. “The renewal of [their ACJ] fleet will happen at some moment. We are in a good position for this with the fact that 100 percent of the single-aisle market with passenger airlines in the kingdom is taken by the A320neo," said Saade. "There used to be one 737 Max customer; they changed for the A320neo recently.” The difficulties with the Max make those who were going for it—both in the airline and business aviation segments—rethink earlier decisions, he added.

There are some ACJ321s operating in the Middle East, whose owners make stops when on an intercontinental journey. Airbus expects the share of the stretch to increase during the migration to the neo, pointing at the 15 percent rise in fuel efficiency and the recent introduction of an extended-range version. With that, the A321 is no longer “a short-legged aircraft." Besides, he said, “There is a tendency with ACJ narrowbody customers that they grow from shorter models to longer ones. So, it is going to be typical to go from ACJ319 to ACJ320neo and from ACJ320 to ACJ321neo," Saade said.

For those who want to stay with their ACJ318, with a worldwide fleet of 20 aircraft, Airbus offers an upgrade that can be performed in five months’ time. For less than $1 million, an owner can add ADS-B, FANS 1A+, and 4G connectivity/Wi-Fi on board with speeds up to 15 Mbps.