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Toulouse, France - Airbus is selling six narrow-body jets intended for Malaysian low-cost carrier AirAsia since the airline won't be able to take delivery of these planes due to the financial difficulties.

The unusual move is a sign of the deepening crisis in the aviation industry caused by the coronavirus pandemic, which some analysts warn could lead to a fire-sale of unwanted planes. Like other airlines looking to save cash amid lockdowns and travel bans that have crippled their business, AirAsia has said it doesn’t need any more aircraft this year.

Manufacturers usually insist an airline takes delivery of jets that have been built, while showing flexibility on delivery dates of planes yet to be produced, especially for top clients. Although “pop-up” sales of unwanted aircraft are not new, they rarely involve high-profile customers and typically include the manufacturer keeping the deposit, the sources said. Airbus declined to comment on whether it had done so this time.

“It is a harsh step to take,” 

said one source, speaking on condition of anonymity due to the sensitivity of the matter.

"We do not disclose or comment on delivery schedules for any customers,"

An Airbus spokesman said.

A spokesman for AirAsia, Asia’s biggest low-cost carrier, declined to comment. Airbus has invited bids for four A320neo and two A321neo jets built for AirAsia, according to the sources and a confidential document seen by Reuters.

Buyers can fetch the jets from France or Germany in June, complete with optional onboard equipment ordered by AirAsia. AirAsia co-founder Tony Fernandes said this month the group had no revenue and 96% of its fleet was grounded. He added that “AirAsia is strong and remains firmly focused on the future”.

A senior Malaysian minister told Reuters on Friday that merging AirAsia with loss-making state Malaysia Airlines was one of the options to “save” them. Airbus said this month it faced many calls from airlines to defer aircraft deliveries, but had not received cancellations directly as a result of the coronavirus epidemic.

Via Reuters
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