Airbus to launch new A321 with nearly 200 orders: sources

Airbus’s A321XLR is set to be the longest-range narrow-body jetliner as airlines look to maximize the flexibility of more fuel-efficient, single-aisle aircraft. (Courtesy Airbus)
Updated 17 June 2019

Airbus to launch new A321 with nearly 200 orders: sources

  • The Paris Air Show is traditionally a slugging match between Airbus and Boeing sales teams
  • But analysts expect this year’s show to be relatively subdued

PARIS: Airbus will launch a long-range version of its A321neo jet at the Paris Air Show on Monday, aiming to carve out new routes for airlines with smaller planes and steal a march on rival Boeing’s plans for a possible new mid-market jet.
The European planemaker will announce close to 200 orders for the new model — the A321XLR — over the week, sources familiar with the matter told Reuters.
The aerospace industry’s biggest annual event, which alternates with Britain’s Farnborough Airshow, is traditionally a slugging match between Airbus and Boeing sales teams in the $150 billion a year commercial aircraft market.
But analysts expect this year’s show to be relatively subdued, with slowing economies, trade tensions and geopolitical uncertainty unsettling airlines, highlighted by a profit warning from Germany’s Lufthansa late on Sunday.
Airbus and Boeing are also grappling with their own problems. The US planemaker strives to bring its top-selling 737 MAX jet back into service after its grounding following two fatal crashes. Airbus, meanwhile, is occupied with a long-running corruption scandal.
Boeing boss Dennis Muilenburg on Sunday said he expected to announce orders for wide-body jets at the show but his main focus at the event is safety.
Analysts expect anything from 400 to 800 commercial aircraft orders and commitments at the show, compared with 959 at Farnborough last year, though it can be hard to identify truly new business against firmed-up commitments and switched models.
Airbus’s A321XLR is set to be the longest-range narrow-body jetliner as airlines look to maximize the flexibility of more fuel-efficient, single-aisle aircraft.


Its range of 4,500 nautical miles will leapfrog the out-of-production Boeing 757 and nudges it into the long-jump category occupied by more costly wide-body jets.
It also eats into a range category targeted by a possible mid-market twin-aisle jet — the NMA — under review by Boeing.
But there is a debate over whether passengers will enjoy flying longer distances in medium-haul planes and at what price.
In particular, the rise of the single-aisle, long-distance jet involves revisiting years of industry marketing about the benefit of roomier cabins to counter jet lag on long trips.
Boeing’s Muilenburg on Sunday said that the A321XLR would only “scratch an edge” of the market segment targeted by the NMA.


Saudi Aramco shares soar at maximum 10% on market debut

Updated 11 December 2019

Saudi Aramco shares soar at maximum 10% on market debut

  • Company is now world’s largest publicly traded company, bigger than Apple

RIYADH: Saudi Aramco shares opened at 35.2 riyals ($9.39) on Wednesday at the Kingdom’s stock exchange, 10 percent above their IPO price of 32 riyals, in their first day of trading following a record $26.5 billion initial public offering.
Aramco has earlier priced its IPO at 32 riyals ($8.53) per share, the high end of the target range, surpassing the $25 billion raised by Chinese retail giant Alibaba in its 2014 Wall Street debut.
Aramco’s earlier indicative debut price was seen at 35.2 riyals, 10 per cent above IPO price, raising the company’s valuation to $1.88 trillion, Refintiv data showed.
At that price, Aramco is world’s most valuable listed company. That’s more than the top five oil companies – Exxon Mobil, Total, Royal Dutch Shell, Chevron and BP – combined.
“Today Aramco will become the largest listed company in the world and (Tadawul) among the top ten global financial markets,” Sarah Al-Suhaimi, chairwoman of the Saudi Arabian stock exchange, said during a ceremony marking the oil giant’s first day of trading.
“Aramco today is the largest integrated oil and gas company in the world. Before Saudi Arabia was the only shareholder of the company, now there are 5 million shareholders including citizens, residents and investors,” said Yasir Al-Rumayyan, the managing director and chief executive of the Saudi Public Investment Fund.
“Aramco’s IPO will enhance the company’s governance and strengthen its standards.”
Amin Nasser, the president and CEO of Saudi Aramco, meanwhile thanked the new shareholders for their confidence and trust of the oil company.
The sale of 1.5 percent of the firm, or three billion shares, is the bedrock of Crown Prince Mohammed bin Salman’s ambitious strategy to overhaul the oil-reliant economy.
Riyadh’s Tadawul stock exchange earlier said it will hold an opening auction for Aramco shares for an hour from 9:30 a.m. followed by continuous trading, with price changes limited to plus or minus 10 percent.

The company said Friday it could exercise a “greenshoe” option, selling additional shares to bring the total raised up to $29.4 billion.
The market launch puts the oil behemoth’s value at $1.7 trillion, far ahead of other firms in the trillion-dollar club, including Apple and Microsoft.
Two-thirds of the shares were offered to institutional investors. Saudi government bodies accounted for 13.2 percent of the institutional tranche, investing around $2.3 billion, according to lead IPO manager Samba Capital.
The IPO is a crucial part of Prince Mohammed’s plan to wean the economy away from oil by pumping funds into megaprojects and non-energy industries such as tourism and entertainment.
Watch the video marking Aramco’s opening trading: