Airbus Gets Certification For The A320neo

November 24, 2015

Airbus has received certification for the A320neo, paving the way for first delivery of the revamped, best-selling jet.

Airbus said the European Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA) had jointly approved the model, which is a fuel-efficient upgrade of its popular A320 medium-haul jet.

The approval is a boost for Pratt & Whitney, whose decision to develop a new generation of engines accelerated airliner projects from Canada to Russia and whose engines will power the first A320neo.

Qatar Airways is expected to take first delivery next month of the first of more than 4,300 aircraft ordered since Airbus launched the A320neo, promising 15 percent fuel savings.

A similar version powered by CFM International should win certification in coming months, Airbus said. Its engines won their own regulatory approval on Friday.

Airbus took the risky decision to upgrade its most popular model in December 2010 after seeing a challenge from industry upstarts led by Canada's Bombardier.

Boeing followed a year later with plans to upgrade the 737, a move that also generated thousands of sales.

"Airbus made a gutsy move and forced Boeing to follow," said Adam Pilarski, senior vice president at Avitas consultancy.

"They took a chance by saying they would be successful with an existing platform if they just updated the engine."

Richard Aboulafia, vice president at Teal Group, said Airbus faces a crucial task to ensure ambitious output plans are met.

"When you have first mover advantage, ramping up is hugely important," he said, adding this would be dictated mainly by whether engine firms could deliver on promises.

In a reminder of challenges facing those trying to break into the main jet market, just as Airbus celebrated Tuesday's approval, Bombardier briefed investors on turnaround plans after delays and cash shortages on its rival CSeries.

Bombardier is expected to win certification for its plane very soon, but remains under pressure to boost sales after winning emergency investment from the Quebec government.

(Reuters)