A321neoLR: Ideal for new North Atlantic routes, potentially a global game changer

AIRBUS COMPLETED the first A321neoLR test flight on 31-Jan-2018 and expects the aircraft to enter service in 4Q2018. With an extended range and seat costs equivalent to much larger aircraft, it holds the promise of a much wider profile of city pair operations. But the impact is likely to be gradual, as limited numbers arrive in service. Long haul low cost operators are prominent among first movers.

LCCs Norwegian Air, Jetstar, Peach Aviation and Air Arabia are the leading LCCs to have committed to acquiring the A321neoLR. Air Arabia signed a deal with Air Lease in Nov-2017 for six A321neoLRs, while Norwegian announced in Jul-2016 the conversion of 30 A320neo orders to A321neoLRs. Both plan to take delivery of A321neoLRs from 1H2019.

Jetstar's parent Qantas Group in Feb-2018 announced the conversion of 18 A321neo orders to the A321neoLR. Jetstar plans to take delivery of the 18 aircraft from 2020 to 2022.

And All Nippon Airways subsidiary Peach announced in Jul-2018 the conversion of two A320neo orders to the A321neoLR. Peach plans to take delivery of both aircraft in 2020 and will likely order more A321neoLRs for its new long haul operation. Jetstar and Peach have to wait until 2020 as there are no more available early slots.