Airbus has reportedly slowed plans for the long-discussed "A220-500" as the manufacturer struggles to build consensus among airlines, leasing companies and its own commercial teams, according to Reuters.
The stretched version of the A220 had been widely expected to move closer to launch this year, with industry speculation pointing to a possible announcement around the Farnborough Airshow in July. Reuters reported, however, that Airbus has recently tempered expectations and is now reassessing the project's timing.
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The proposed aircraft would be a relatively simple stretch of the current A220-300, increasing capacity to around 180 seats while retaining the existing wing and Pratt & Whitney GTF engines. That approach would avoid the cost of a major redesign but would likely reduce range compared with today's model.
According to Reuters, the range penalty has generated mixed reactions among potential customers. While the larger aircraft could offer lower operating costs per seat, some airlines appear reluctant to sacrifice performance in exchange for additional capacity.
Lessors' concerns about the market value of the A320
Leasing companies are also said to be approaching the project cautiously. Many lessors have large exposures to the Airbus A320neo family and are concerned that a larger A220 could blur the distinction between the two product lines, potentially affecting residual values of existing A320neo fleets.
The issue places Airbus in a delicate position. A successful A220-500 could help lower production costs across the A220 program, which has yet to achieve sustained profitability since Airbus acquired control of the former Bombardier CSeries program in 2018.
At the same time, the aircraft would move into territory currently occupied by the A320neo, one of Airbus' most successful and profitable products. Industry sources cited by the news agency said the manufacturer is studying whether a larger A220 could divert demand away from the A320neo rather than attract entirely new customers.
The hesitation arises even after Airbus secured the largest order in history for the A220, with Malaysian low-cost carrier AirAsia, which ordered 150 aircraft.
Despite this, rival Embraer has secured several contracts for its E2 family, which has just surpassed 500 orders with an agreement with US lessor Azorra.
