Airbus Launches Corporate Jet Versions of A320neo, A319neo Planes -- Update

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.

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