By Robert Wall
GENEVA--Airbus Group NV (AIR.FR) on Tuesday began selling a new
business jet based on its popular A320neo single-aisle airliner in
a bid to close the gap with Boeing Co. (BA) in the small but
lucrative market for some of the most expensive business jets.
The European plane maker, which has already been selling
current-generation narrowbodies as so-called AirbusCorporate Jets,
is extending that to the A320neo plane and the slightly smaller
A319neo, Airbus's chief operating officer for customers, John
Leahy, told reporters at the European Business Aviation Conference
and Exhibition.
The ACJ320neo will retail for around $95 million, with the
smaller model costing $87 million though prices vary depending on
their cabin choice, Mr. Leahy said.
Acropolis Aviation, based in Farnborough outside London, is the
first customer for the plane, taking one ACJ320neo.
Mr. Leahy said Airbus has signed two further deals from
unannounced buyers.
The larger ACJ320, as the plane is designated in its VIP
version, can ferry 25 passengers over a range of around 6,900
miles, with the smaller ACJ319 reaching more than 7,700 miles with
eight passengers onboard.
The A320neo, for "new engine option," is due for first delivery
to airline customers in November. Versions for VIP customers will
be available from November 2018, Mr. Leahy said.
Airbus will offer the VIP version with engines from either Pratt
& Whitney, an arm of United Technologies Corp. or from a joint
venture of General Electric Co. and Safran SA.
Boeing has already sold several of its equivalent BBJ Max
aircraft even though the updated version of its 737 narrowbody will
enter service only about two years after the Airbus aircraft.
Boeing Business Jet President David Longridge said on Monday that
the Chicago-based plane maker could book further orders for those
planes within the next month.
Mr. Leahy wouldn't rule out offering the A321neo also in a
corporate jet version, but said the ACJ320neo and ACJ319neo were
given priority because they are in "the sweet-spot of the
market."
Boeing typically has had an edge over Airbus in the market for
VIP aircraft, with the 747 jumbo serving as a head-of-state
aircraft for many countries. The U.S. Air Force last year announced
the newest jumbo, the 747-8, would be used as the next Air Force
One, the aircraft carrying the U.S. president, with Japan opting
for twin-engine 777 jetliners for government use.
Though airline demand for the 747-8 has been weak, forcing
Boeing to curtail production, company officials still view the
plane as popular with the high-end customers. "We still see healthy
demand for the 747-8. There are still several governments that are
interested in buying that airplane," Mr. Longridge said.
Mr. Leahy said Airbus was currently not pushing VIP versions of
its A380 superjumbo because of the cost and complexity of
outfitting the jet.
Write to Robert Wall at robert.wall@wsj.com
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