Multi-billion-pound Malaysian order for Belfast-built aeroplanes 'a tribute to the calibre of workers in the city'
A massive order for aeroplanes which are partly built in Belfast has been widely welcomed.
Malaysian operator AirAsia announced today that it is buying 150 A220-300s at a cost of about $19bn (about £14bn), to be delivered from 2028 onwards, with the possibility of upping this to 300 aircraft in the A220 family.
It is the biggest single order of Airbus A220s ever placed, and much of the aircraft’s frame is built in east Belfast.
Aircraft-building in the city, which used to be concentrated under a single firm, Shorts, has undergone a confusing series of buyouts in recent years.
Right now, as a result of a deal last year, most of the work is done by two separate businesses: one owned by Airbus and another owned by Boeing (which still goes by the name Shorts).
Airbus (employing about 1,500 staff in the city) makes wings for the A220 aircraft as well as parts of its fuselage, whilst Boeing/Shorts (with about 2,000 workers) does other fuselage work, largely for Bombardier, said Alan Perry, senior organiser for the GMB union who represents workers in both firms.
As to whether the deal will lead to more people being hired by Airbus in the city, Mr Perry said it is too early to tell, but added that the news “has to be welcomed”, adding: “It shows the calibre of the workforce in Belfast – that has to be the mantra.”
East Belfast MP Gavin Robinson said the deal is “a significant boost for the Airbus operation locally”.
“As with any such orders, it isn’t just the direct impact upon the 1,500 staff at the site in east Belfast, but the downstream impact on many other companies in the supply chain also,” he said.
“The aerospace, defence and security sector is a major part of the Northern Ireland economy and one which offers significant opportunities.
“Airbus have invested in the Belfast operation, and this is good news for everyone associated with the A220 programme.”
Alliance East Belfast MLA Peter McReynolds said: “This announcement marks a significant day for our world-class aerospace industry, and to be able to welcome a deal of this scale and value is fantastic.
“Whilst it’s testament to the skills and talent of the workforce we have based here at the site in east Belfast in particular, this will inevitably have a ripple effect on the wider supply chain right across Northern Ireland as well.
“Crucially, it sends a message loud and clear that Belfast and Northern Ireland are well and truly open for business, with exceptional skills on offer and there to be invested in.”
In an announcement to investors, AirAsia described the aircraft it has bought as having a “high-density 160-seat configuration” which can “reach profitability with fewer passengers than the larger narrowbody alternatives”.
It said that alongside the 150 deal, there is “the strategic flexibility to upsize the commitment to 300 of the A220 aircraft family to meet future demand”.
Bo Lingam, CEO of the AirAsia Group said: “We built Malaysia into the world's top low-cost carrier hub, and we opened up air travel to millions of people across Asia who had never flown before.
“This plane gives us the ability to build the biggest and densest network, serving as a vital tool for efficiency.
“Its range of up to seven hours opens up entirely new possibilities, and allows us to match right-sized capacity to demand and give our guests the flexibility to fly whenever they want through increased frequencies.”