Summary

  • The Airbus A320neo, with its new engine option and other improvements, has helped Airbus remain competitive in the market against both Boeing and smaller rivals.
  • The A320neo's main advantage is its fuel efficiency, with a reduction in maintenance costs of 20% and a fuel burn reduction of up to 16% compared to the A320ceo.
  • The A320neo has been a popular choice for airlines, with over 17,800 orders and 11,083 deliveries as of September 2023, and it continues to advance with upgrades for longer range operations.

The Airbus A320 is the best-selling Airbus aircraft and not far behind the Boeing 737 for most popular to date. One of the successes of the series has been the regular updating with new models and features. This has included the development of ‘neo,’ or New Engine Option, variants.

A320ceo and A320neo families

The Airbus A320 first flew in 1988, with launch customer Air France. This first model was soon followed by the longer A321 in 1994, the shorter A319 in 1996, and the A318 in 2003.

These new models came with minimal structural modifications and similar cockpit design and operating procedures. This has been a major advantage for airlines, lowering operating and maintenance costs and allowing pilots to operate aircraft across the fleet.

By 2006, Airbus began looking for ways to offer a more efficient narrowbody aircraft. Customers were looking for this in new orders, and other manufacturers were heading towards offering it. Rather than develop a new aircraft model, Airbus focused on changes to the existing A320 family.

Read the latest Airbus news here.

After some developments offering efficiency gains with modifications including winglets and weight savings (through the A320 Enhanced, or A320E, program), they soon moved to the development of new variants for the whole family, known as A320neo, or 'new engine option.' The original family then became known as A320ceo (for 'current engine option'). The first A320neo flew with Lufthansa in 2016.

Beating the competition

These neo upgrades allowed Airbus to quickly (compared to a clean-sheet redesign) update the aircraft and remain competitive and attractive to customers. Boeing, of course, has done the same with changes to the Boeing 737 series over a much longer period.

In its coverage of the development, the New York Times reports how it was not just competition from Boeing that led to these changes but also from other manufacturers. They explain:

“Analysts said Airbus’s decision was likely motivated more out of concern about the challenge posed by smaller rivals from Brazil, Canada, China, and Japan. They are all developing their own jets with the same engines as the A320neo and up to 150 seats, bringing their capacity and fuel burn within striking distance of Airbus’s biggest money maker.”

These competing aircraft included the Bombardier C Series (later to become the Airbus A220) and the C919, being manufactured by Chinese company COMAC.

New engines and more efficient operation

These potential competing aircraft offered new engines and more efficient operation, and that was the focus of the A320neo development.

The main difference, of course, is in the new engines. The A320neo uses CFM International LEAP-1A or Pratt & Whitney PW1000G engines. Compared to the A320ceo engines, these offered a reduction in maintenance cost of 20% and a reduced fuel burn of up to 16% (according to data from FlightGlobal).

A Turkish Airlines Airbus A321neo on final approach.
Photo: Markus Mainka | Shutterstock

Other improvements introduced with the A320neo include:

  • Introduction of sharklets. These curved wingtips (also used by Boeing on the 737) offer a fuel burn reduction of up to 3.5%.
  • New, enlarged cabin design. With changes to the rear galley, toilet design, and new seat layouts, the A320neo offers additional cabin space (but the number of seats, of course, depends on the airline’s chosen configurations).
  • Improved range. The A32neo range is 6,850 kilometers, compared to 5,700 kilometers for the A320.

Overall, the A320neo offers (according to Airbus) up to 15% total fuel saving over the A320ceo. And, as with the members of the original A320ceo family, Airbus maintained cockpit and airframe consistency. The A320neo offers a 95% airframe commonality with the A320.

Overall, this offered a good upgrade option for airlines, for a price increase of around $10 million (with a $110 million initial list price).

Some airlines were slower to move over to the neo family, perhaps partly as many of the improvements (except the engines) could be fitted to existing A320ceo, bringing some of the efficiency gains at a lower cost.

Lufthansa Airbus A320neo Parked At London Heathrow Airport With Air Canada & Austrian Airlines Planes In The Background
Photo: Ceri Breeze | Shutterstock

Over time, the A320neo has proved to be popular for Airbus. The challenges with the Boeing 737 MAX have no doubt helped it ahead, but the two series remain very competitive.

In October 2020, the 10,000th A320 family aircraft was delivered to MEA. As of the end of September 2023, over 17,800 A320 family had been ordered, with 11,083 delivered.

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Where next for neo aircraft

The A320neo family has continued to advance since the first upgrade to "neo" in 2016. It has been upgraded with the A321LR and upcoming A321XLR. These are upgrades focussing on longer range - bringing new possibilities for longer narrowbody operations for many airlines.

The Airbus A321XLR taxiing to the runway.
Photo: Wirestock Creators | Shutterstock

There is no reason that the "neo" concept should only apply to the A320. Of course, we have seen the Airbus A330neo flying since 2018, bringing upgraded Rolls-Royce Trent 7000 engines to the A330 widebody. This has worked in upgrading the offering at a lower cost, but has not seen the success that the A320neo has.

A Delta Air Lines Airbus A330neo about to land.
Photo: The Global Guy | Shutterstock

It could be a future upgrade option for the newer A220 (although at the moment, a stretched upgrade is all that is being looked at). Likewise, an upgraded Airbus A350 may well happen in the not-too-distant future. The aircraft, of course, is much newer than the A320ceo, so is in less need of an upgrade or efficiency improvements. Talks did take place back in 2019 with GE over a new A350 engine - possibly derived from the GE9X, but nothing has been announced.

Let us know your thoughts on the A320neo, its success and problems, and possible future direction in the comments section below.

Sources: New York Times, FlightGlobal, Airbus

  • rsz_airbus_50th_years_anniversary_formation_flight_-_air_to_air
    Airbus
    Stock Code:
    AIR
    Date Founded:
    1970-12-18
    CEO:
    Guillaume Faury
    Headquarters Location:
    Toulouse, France
    Key Product Lines:
    Airbus A220, Airbus A320, Airbus A330, Airbus A340, Airbus A350, Airbus A380
    Business Type:
    Planemaker