As Airbus closes on a go-ahead decision for its A320 New Engine Option (NEO), potential launch customer Qatar Airways confirms it is in talks with Pratt & Whitney about the geared turbofan (GTF) for the aircraft.

Plans for the re-engined A320 family variants were unveiled by Airbus last year, which would be offered with a choice of advanced turbofans: a version of the P&W PW1000G GTF – possibly through existing supplier International Aero Engines – and the CFM LEAP-X. The A320 upgrade programme is reportedly likely to cost between $1.3 billion and $2 billion.

Airbus is working on the NEO’s business plan and evaluating the engineering resources required, with a launch decision expected in October. The upgraded twinjet is due to enter service around 2015.

Qatari flag carrier Qatar Airways has been evaluating the A320 NEO as well as Bombardier’s PW1000G-powered CSeries with a view to ordering one or both aircraft.

Qatar Airways chief executive Akbar Al Baker revealed at Farnborough that discussions about a CSeries deal had reached an impasse due to frustrations with P&W over maintenance cost guarantees. However constructive talks about a CSeries deal, as well as a possible A320 NEO acquisition, are now underway, says the airline: “We are currently engaged with Pratt & Whitney to better understand updated maintenance costs and guarantees provided to us on the GTF for CSeries and A320 NEO applications.”

Qatar Airways is already a major Airbus single-aisle operator, with a fleet of 26 A319s, A320s and A321s in service and a further 19 on order, all powered by IAE V2500 engines.