A320 NEO vs CEO comparison study

A320 NEO vs CEO comparison study

This study draws a comparison between A320 CEO and A320 NEO variants from a technical and commercial point of view, with emphasis on the changes and cost differentials introduced by the new engine types.

New engine technology was introduced in commercial operation for single-aisle aircraft in 2016. Two of the world’s largest engine manufacturers, CFM International (CFMI) and Pratt & Whitney (P&W), launched solutions to re-engine the A320 aircraft model. The A320 is the only in production western-built single-aisle that offers engine choice. The Airbus group designated the current engine option as A320CEO and the new variant, the new engine option, as A320NEO. The evolution from CEO to NEO is part of a larger industry advancement that seeks to improve aircraft efficiency, decrease fuel consumption and lower environmental footprint.

This study draws a comparison between A320 CEO and A320 NEO variants from a technical and commercial point of view, with emphasis on the changes and cost differentials introduced by the new engine types. Both engine types on the A320NEO are delivering on their fuel burn improvement expectations.

A typical operator can save around US$500k annually on fuel by operating an A320NEO, compared to operating an A320CEO, powered by its predecessor engines, assuming a fuel price of US$2 per gallon and average utilisation. This translates into a theoretical monthly lease rental increase of $21k for an A320NEO, assuming a 50% follow-through of operational savings to rental premium.

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