Airbus Fails to Dampen Expectations For A330neo Launch
It seems to be a question not of if but of when Airbus will confirm that it will develop a new, updated version of the A330, with a new engine.
As Airbus mulled whether to launch a re-engined variant of its successful A330 twin-aisle twinjet, the European manufacturer had begun to call the established model the A330 “ceo” (for current engine option).

Prospects for the much-anticipated launch of the Airbus A330neo appeared to be strengthening on the eve of the 2014 Farnborough International Airshow. While the European airframer was officially remaining tight-lipped on plans for the re-engined model, this has done little to dispel Reuters and Bloomberg reports of a launch announcement this week, citing sources close to the program. In particular, Hawaiian Airlines confirmed that it is actively considering the A330neo as a possible alternative to the A350-800. AirAsia has also been identified as a prospective launch customer for the new twinjet, but it remains to be seen whether latest iteration of the Neo program will be announced at Airbus’s opening day press conference at Farnborough on Monday morning.

Last month, Airbus strategy and marketing executive vice-president Dr. Kiran Rao conceded that a re-engined A330 was “under serious consideration.” But it was “not a done deal” and was “not a decision to rush,” he added, because the original A330 “ceo” (for “current engine option”) was still selling.

Rao said the A330neo was not an exercise to perform because it looked pretty: rather, it was strategically “most important to match the [Boeing 787-9’s] cash operating costs [COC].” Launching it–possibly in -200 and -300 sub-variants–could see the A350-800, which has lost many orders in recent months, postponed if not entirely shelved.

Airbus chief operating officer John Leahy recognized in pre-show briefings that there “will be marketing to do” to sell the A330neo: it would match the 787-9’s seating capacity, with similar fuel burn and COC, but with “much lower” capital cost. He acknowledged that Airbus market forecasts had shown “A330 [sales] falling off,” but pointed out that orders had in fact doubled since the 787 was launched as carriers “rediscovered” the A330. Nevertheless, carriers wanted more, and were asking for “a little of this, a little of that.”

As head of strategy and marketing, Rao claimed that little was required to define an A330neo; beyond engines and aerodynamic enhancements, the cabin could be freshened but the cockpit is “good for another ten years.” Despite the 787-9’s additional 1,000-nm range, an A330neo could operate 92 percent of the same routes with a wider seat and much lower capital cost, claimed Leahy.

Throughout June, Airbus officials remained somewhat coy about A330neo launch requirements. Programs executive vice-president Tom Williams said the manufacturer would like to continue producing the A330, which is “a good match” for the A350, but would want a long-term [A330neo] program that would need to be more than five years–equating to at least 600 aircraft at ten per month. Quoting Airbus Group chief executive Tom Enders as seeing potential for “hundreds” of A330neos, Airbus president Fabrice Bregier puts that quantity at “between 200 and 900” with half that number being insufficient for a launch.

Regarding necessary changes to the A330, Rao said the current optimized wing is “very efficient” and could not easily be improved, even with winglets, which would “not do much” to enhance performance. He sees new engines as the principal source of improvement, although there would also “be some aerodynamic clean-ups.” New, “better” powerplants would contribute to a five-percent weight increase and a higher aircraft price.

Engine Options

An possible exclusive relationship with Rolls-Royce could see the UK manufacturer offer an enhanced Trent XWB-influenced development of the Trent 1000-TEN or launch an initial application of the proposed Advance engine, perhaps having much in common with the RB3039 previously offered for the Boeing 777X (but not expected to enter service before 2021). GE has offered the 787’s GEnX engine, but the U.S. group appears not to have high expectations of being selected for the program.

When could an A330neo come along? A320neo-family senior vice-president Klaus Roewe says Airbus has a recipe for “successful” re-engining programs: “Take a reliable mature ‘platform’ with a wide customer base, add new engine technology, optimize aerodynamics, flight-control laws and weight, minimize weight increase, and cook for four years…”