# AirAsia interested in potential Airbus A321neo freighter Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-11-03 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: AirAsia in Talks with Airbus on A321neo Freight Conversion Meta Description: AirAsia Group Bhd is exploring the potential of converting a significant portion of its A321neo orders into dedicated freighter aircraft to cater to growing URL: https://financedigest.com/airasia-interested-in-potential-airbus-a321neo-freighterhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-11-03t043025z1lynxmpeha2047rtroptp4health-coronavirus-thailand-airlines-1-1736837485255-compressed.jpg) By Liz Lee KUALA LUMPUR (Reuters) – Malaysia’s AirAsia Group Bhd is in talks with Airbus SE about its interest in the manufacturer developing a new freighter version of its A321neo passenger plane, the head of its logistics arm said on Wednesday. AirAsia would seek to convert a “meaningful chunk” of its 362 orders for the passenger version of the A321neo narrowbody to a dedicated freighter, said Pete Chareonwongsak, CEO of [AirAsia](https://www.financedigest.com/with-progress-in-creditor-talks-malaysias-airasia-x-targets-end-oct-meetings.html) logistics division Teleport. For a lot of the [markets that we need to reach](https://www.financedigest.com/herbal-supplements-market-to-reach-us-191-7-bn-by-2030-at-10-6-cagr-fmi.html "Herbal Supplements Market to Reach US$ 191.7 Bn by 2030 at 10.6% CAGR: FMI") both in range but also in capacity, it’s a great product,” he told reporters of the potential freighter. Would we be the [launch customer](https://www.financedigest.com/dun-bradstreet-helps-sales-and-marketers-speed-path-from-prospect-to-profitable-customer-with-launch-of-db-hoovers.html "Dun & Bradstreet Helps Sales and Marketers Speed Path from Prospect to Profitable Customer with Launch of D&B Hoovers")? I don’t know. We’ll see.” Chareonwongsak cited reports that [China’s JD Logistics Inc plans](https://www.financedigest.com/birmingham-lines-up-post-brexit-housing-plan-with-a-little-help-from-its-friends-in-china.html "Birmingham lines up post-Brexit housing plan, with a little help from its friends in China") to have a fleet of 100 freighters by 2030 as an example of the scale that AirAsia could seek in its cargo business as it focuses on growth in e-commerce. We think that Southeast Asia, if we [focus on this market](https://www.financedigest.com/maximising-the-opportunities-available-from-marketing-technology-and-innovation-focused-thinking.html "Maximising the opportunities available from marketing technology and innovation focused thinking"), can absorb that level of capacity,” he said. [Industry website Leeham News in August reported Airbus](https://www.financedigest.com/airbus-pledges-deeper-industrial-ties-with-india.html "Airbus pledges deeper industrial ties with India") was in talks with customers about a freighter version of the A321neo. An Airbus spokesperson said on Tuesday that it was always looking to advance its products and was in constant dialogue with its [customers listening](https://www.financedigest.com/future-proofing-your-small-business-its-time-to-listen-to-your-customers-needs.html "Future proofing your small business – it’s time to listen to your customer’s needs") to their requirements. There are many studies and not all [see the light of day,”](https://www.financedigest.com/uk-retailers-see-40-jump-in-boxing-day-shoppers-springboard.html "UK retailers see 40% jump in Boxing Day shoppers -Springboard") the spokesperson said. “Details of discussions with our customers remain confidential.” Airbus in July announced plans for a freighter version of its A350 widebody jet, in a [challenge to Boeing Co’s longstanding dominance of the market](https://www.financedigest.com/molasses-market-a-study-combine-with-challenges-and-opportunities-forecast-by-2017-to-2025.html "Molasses Market: A Study Combine With Challenges And Opportunities, Forecast By 2017 To 2025") for dedicated cargo planes.. Boeing is also expected to launch a freight version of its 777X big jet soon, with [Qatar Airways](https://www.financedigest.com/finnair-partners-with-qatar-airways-in-search-of-new-routes.html "Finnair partners with Qatar Airways in search of new routes") and FedEx seen as potential launch customers, market sources say. In the narrowbody market, older versions of the A321 and 737 [passenger](https://www.financedigest.com/german-new-passenger-car-registrations-up-3-in-august-industry-source.html) planes are being converted into freighters but there is no new-build freighter plane on offer. DEMAND DILEMMA [Airbus has looked at the possibility of offering new A320-family freighters](https://www.financedigest.com/airbus-in-talks-on-sales-of-a350-freighter-exec.html "Airbus in talks on sales of A350 freighter -exec") in the past. In 2007, for example, Belgian express carrier TNT talked to Airbus about [launching such a programme](https://www.financedigest.com/uk-to-launch-new-billion-pound-home-insulation-programme.html "UK to launch new billion-pound home insulation programme") with a large order, Flightglobal reported at the time. But since then demand for the passenger version of the A320 family has soared and Airbus faces little or no pressure to [win freighter sales](https://www.financedigest.com/hermes-asks-court-to-block-metabirkin-nft-sales-after-jury-win.html "Hermes asks court to block ‘MetaBirkin’ NFT sales after jury win") to add volume, industry sources cautioned. It is debating instead how to [manage existing production](https://www.financedigest.com/host-analytics-up-ends-the-enterprise-performance-management-market-with-the-first-product-designed-specifically-for-business-users.html "Host Analytics Up-Ends the Enterprise Performance Management Market with the First Product Designed Specifically for Business Users") demands. Any new product would also have to [overcome the hurdle](https://www.financedigest.com/3-common-financial-hurdles-for-the-self-employed-and-how-to-overcome-them.html "3 Common Financial Hurdles for the Self Employed (And how to Overcome Them)") of justifying a $2 billion or so investment with fresh demand, without simply displacing existing orders for jetliners. It is better to facilitate the passenger-to-freight [conversion market,” one industry](https://www.financedigest.com/cavai-and-azerion-deliver-industry-first-with-conversational-in-stream-video.html "Cavai and Azerion deliver industry first with conversational in-stream video") source said. The coronavirus [crisis has nonetheless shed light on opportunities](https://www.financedigest.com/why-entrepreneurs-can-transform-the-crisis-into-business-opportunities-to-create-more-impactful-and-long-lasting-ventures.html "Why entrepreneurs can transform the crisis into business opportunities to create more impactful and long-lasting ventures") for narrow-body freight traffic as airlines shipped goods using passengers jets as temporary freighters. Teleport on Wednesday launched its first 737-800 freighter to be based in Bangkok. It plans to grow the fleet to six planes by 2023, Teleport [Chief Operating Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") Adrian Loretz said. Teleport is in [talks with investors to raise $50 million to $100 million by the end of the year](https://www.financedigest.com/extraordinary-rollercoaster-good-friday-talks-remembered-25-years-on.html "‘Extraordinary rollercoaster’, Good Friday talks remembered 25 years on") and would look to list as a separate company in three years, Chareonwongsak said. The division, which also carries cargo in the belly of AirAsia passenger planes and has a [food and parcel delivery](https://www.financedigest.com/european-food-delivery-shapes-up-with-getirs-gorillas-buy.html "European food delivery shapes up with Getir’s Gorillas buy") business, is aiming for $1 billion of annual revenue within three years, he added. [(Reporting by Liz Lee in Kuala Lumpur; Additional reporting and writing by Jamie Freed and Tim](https://www.financedigest.com/tim-shares-slide-as-reported-grid-bids-disappoint.html "TIM shares slide as reported grid bids disappoint") Hepher; Editing by Kim Coghill and Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---