S.Korea’s Asiana to buy 25 Airbus A321-200 NEOs

SOUTH Korea’s second-largest carrier Asiana Airlines on Wednesday announced a $2.8 billion order for 25 planes from European maker Airbus to meet rising regional demand, especially from China.

The airline said the A321neos, worth a total of 3.1 trillion won ($2.8 billion), will be delivered between 2019 and 2025.

The fuel-efficient planes are capable of carrying 180 passengers and will be introduced into the global market in 2016.

Asiana said the order would complete the modernisation of its overall fleet, following plans to introduce six A380 superjumbo jets by 2016 and 30 midsize A350s between 2017 and 2025.

The new aircraft will replace the company’s ageing A321-200s currently used on routes into China and Southeast Asia.

Compared with its bigger domestic rival, Korean Air, Asiana’s operation has focused on short-haul routes.

The investment plan came as airline operators seek to capitalise on soaring demand from China’s increasingly affluent population and attract more Asian passengers travelling to the US and Europe.

On Wednesday Asiana reported a net profit of 62.7 billion won in 2014, a turnaround from a loss of 114.7 billion won a year ago, helped by the weak yen and falling oil prices.

It posted an operating profit of 98 billion won, against a loss of 11.2 billion won a year earlier. Annual sales last year rose two percent year-on-year to 5.84 trillion won.