Air France- KLM To Buy 50 Airbus A350

Air France-KLM has announced plans to purchase 50 long-haul jets from Airbus along with purchase rights for an additional 40, in what is the company's largest-ever wide-body purchase. The deal includes both the A350-900 and the larger A350-1000 models, and the aircraft will be delivered between 2026 and 2030. The decision came after the board backed the deal, which is estimated to be worth several billion dollars. 

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Airbus and Boeing were in tight competition, backed by engine makers, as the airline's fleet planners juggle range, size, and cost to find replacements for Airbus A330 jets and most of the group's older Boeing 777s. CEO Ben Smith stated that Air France-KLM would look at the 400-seat twin-engined jumbo to replace its Boeing 777-300ER long-haul jets which would continue to fly through this decade.

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CEO Ben Smith explained that the A350 had won on either range or size compared with their 787 equivalents given the specific shape of the post-Ukraine network. The larger Boeing 777X had yet to be certified and would not be available in the time required. Air France-KLM had considered splitting the order between Airbus and Boeing but decided to stick to one supplier due to competitive prices. Smith added that the purchase would provide fleet flexibility, allowing the company to allocate aircraft among its brands based on market or regulatory conditions. It also leaves open the possibility that capacity could be withheld from Amsterdam's Schiphol where the airline is locked in a dispute with the Dutch government over flight curbs. 

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According to Smith, the purchase is the latest stage of a sweeping renewal and simplification of the 500-strong fleet carried out under his direction since he joined the group from Air Canada in 2018. The deal would give Air France-KLM the possibility to shift jets to any carriers it may buy, including the potential privatization of Portugal's TAP. Smith also addressed concerns about production delays, stating that the company had already ordered 41 A350s from Rolls-Royce, despite in-house maintenance arms having repair partnerships with General Electric, the leading engine supplier for the 787.

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