Why the Launch of the Airbus A321XLR Isn’t Going to Plan

15.05.2024 - 17:21 / skift.com / Aer Lingus / Luis Gallego / Gordon Smith

There’s been a late change of plan for Airbus’ new plane. The A321XLR is the company’s flagship single-aisle jet and until recently, Aer Lingus was due to fly it before anyone else.

Now, the Irish flag carrier has lost the honor – the first flight is going to Iberia instead.

In aviation circles, laying claim as ‘launch operator’ is coveted. It can raise brand recognition and tell the world you’re a company at the cutting edge. So what went wrong for Aer Lingus? 

The biggest factor is a lengthy pay dispute with its pilot union. Flight crew are reportedly seeking salary increases of around 20%. Aer Lingus has said it will not offer more than 8.5%, a proposal rejected in January.

The Irish Times reports that Aer Lingus and the Irish Airline Pilots’ Association are awaiting a labor court recommendation following hearings that adjourned earlier this month.

Earlier this year, Luis Gallego, CEO of Aer Lingus’ parent company IAG, publicly warned that the new aircraft wouldn’t be heading to Dublin if the pilots couldn’t agree to a deal.

IAG is a powerhouse in the European airline industry. It also owns British Airways, Iberia, budget carrier Vueling, and long-haul low-cost operator Level. Having multiple brands under a single parent organization allows IAG flexibility in where, when, and how it invests. 

Put simply, it can place a single order as IAG and fine-tune the specifics later.

In a statement to Skift, IAG said: “Aer Lingus has not been able to give IAG the assurances needed on cost structure to ensure the returns required to invest in its fleet. IAG has decided that the Airbus XLR planned to be assigned to Aer Lingus for delivery in September 2024 will no longer be assigned to Aer Lingus. We will only make fleet investments where it makes commercial sense to do so and where we can generate a return from doing so.”

Aer Lingus did not respond to a request for comment.

Iberia confirmed to Skift that it will be the launch airline for the XLR. Madrid to Boston and Washington D.C. are likely to be the first long-haul routes in the fall. However, ahead of its transatlantic debut, the airline said it will operate the aircraft on “medium-range” flights within Europe.

Speaking last week, Marco Sansavini, Iberia’s new president, said that the delivery plan for the XLR joining the Spanish carrier is being accelerated. 

It is common for airlines to introduce a new plane type on a soft launch basis. This typically includes flying shorter routes to bolster crew familiarization. It also offers the company a chance to iron out any teething issues before the plane flies more complex long-haul services.

The immediate fate of the first plane – which has already been pictured at Airbus’ factory in Aer Lingus colors – is