COMPETITION: Air France – KLM puts Airbus and Boeing in dispute for fleet renewal

Photo by: Aeroin

KLM Royal Dutch Airlines, a company of the Air France – KLM group, is about to replace its fleet of 737 NG (New Generation). For this, it will put Boeing and Airbus in dispute in search of the best option for the renewal of its fleet.

As reported by Aeroflap and Reuters websites, the Air France Group – KLM will make a deal involving 80 new mid-size jets. This deal will be worth, per table, about $8 billion, and both Airbus and Boeing can offer attractive discounts as both automakers are looking for potential post-pandemic customers. The Aeroflap website also states that, in addition to KLM, negotiations should involve new aircraft for the French-Dutch company Transavia, which is also managed by the group.

Apparently, the potential replacements for the 737Ng of both Transavia and KLM are the 737 MAX and the NEO (New Engine Option) version of the Airbus A320 and A321.

However, Air France is also expected to undertake additional negotiation under its lower carbon plan for previous generation aircraft such as the A320 and A321. Such negotiation, at first, should favor the European manufacturer. It is worth remembering that, in order to replace other A320 family planes present in its fleet (such as the A319, for example), the flag airline of France ordered 60 Airbus A220 jets. Of these, Air France has already received its first copy.

Historically, KLM has a separate aircraft philosophy: while its French group partner, Air France, opts for the new European jets, descendants of a Bombardier project, KLM favors the second generation of E-Jets (E175-E2 ; E190-E2; E195-E2) from the Brazilian Embraer. This is also true for mid-range aircraft, as the 737 family is KLM's flagship, while its French sister bets on the A320 family.

It is still unclear what the outcome of this dispute will be. The only thing left for us, then, is to observe its new chapters, as it promises to become more fierce in the coming years, given that it is a clash between two companies that often face each other directly. Also, and mainly, going forward, there will be an increase in environmental pressure on European operators, in addition to the search for reduction of operating costs by air operators.