787 Deliveries Render A330neo Obsolete

The A330neo family was supposed to have been Airbus’ “quick win” solution against the 787. It has been anything but that.

With no engines in sight, first flight is delayed and with it, Airbus’ planned late 2017 entry into service is now sliding ever closer to 2019.

By association, Rolls-Royce’s reliance on powering fringe market products like this questions their capability to read market demand correctly. They got it wrong with the A340-500 and A340-600. They got it right with the A350, only then to go into reverse with the A330neo.

Little wonder then, why GE Aviation rightfully snubbed Airbus’ advances on this lacklustre vanity project.

The 787 continues to deliver in strong numbers, replacing A330s the world over. Not only is this denting residual values on the already ageing-asset depreciating A330 fleet, it is hammering down lease rates too.

This doesn’t augur well for the oft-delayed A330neo program.

No one is ordering A330neo to complement, much less replace 787s. It makes you wonder whether Airbus’ half-baked efforts to keep the gas-guzzling A330 family going is even worth the effort.

Looking at the weak backlog, the answer is evident, especially when junk credit rated airlines like AirAsia X are your biggest customer.

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