Paris, September 17 (BUS): Airbus (AIR.PAIndustry sources said, on Friday, that it had agreed to cut prices or reschedule the delivery of hundreds of aircraft ordered by Malaysian AirAsia (AIRA.KL) to save a contract worth tens of billions of dollars with its largest Asian customer.
Reuters reports that the restructuring deal is redefining relations between two of its closest industry partners, wracked by the financial effects of the coronavirus crisis, and removing uncertainty over the fate of as many as 400 A320 single-aisle aircraft yet to be delivered.
Airbus declined to comment, while Air Asia did not immediately respond to a request for comment.
The sources said the AirAsia deal does not include aircraft cancellations on demand but does include a new delivery schedule, price cuts or other improvements in terms.
AirAsia said last year that it would stop taking shipments of all Airbus planes and would review remaining orders.
Industry sources said it had also stopped sending interim payments to Airbus, prompting the aircraft manufacturer to suspend plans to produce on-demand planes pending a new restructuring deal.
The deal comes as other airlines in Asia, which have ordered hundreds of planes to secure their growth, are in the midst of a restructuring or are expected to push for easing.
One source said other suppliers were expected to come under pressure to negotiate new terms.