Qatar's Airbus buy looms, Boeing out-sources

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Qatar's Airbus buy looms, Boeing out-sources

LE BOURGET, France (Reuters) =97 Airbus confirmed on Tuesday that a "major=
=20
deal" to sell planes at this week's Paris Air Show was imminent, with=20
sources predicting a much-anticipated order from Qatar Airways.=20
Chicago-based Boeing had been in the running as recently as last week=20
hoping to sell its wide-body 777 model to Qatar, an all-Airbus carrier, but=
=20
sources said it had lost out. "There's an announcement Wednesday and=20
there's one Thursday," said an Airbus spokesman, declining to comment on=20
when Qatar was scheduled. A source close to the company said the Qatar deal=
=20
would come on Thursday. Industry sources told Reuters that Qatar would not=
=20
be buying new planes from Boeing, something the airline said it was still=20
considering last week. A Qatar spokesman told Reuters last week the airline=
=20
would announce a deal at the Paris show and was considering buying Airbus=20
A330-200s, planes it already flies, as well as aircraft for longer flights=
=20
such as Airbus A340-600s and Boeing 777s.


Qatar Chief Executive Akbar al-Baker plans to expand the carrier in coming=
=20
years as it competes with fast-growing rival Emirates, which announced a=20
deal for Airbus planes worth more than $12 billion at the Paris show on=20
Monday. Al-Baker was expected to attend as the Airbus deal is announced, a=
=20
source said. Qatar is one of the world's fastest-growing airlines, with=20
plans to extend to 50 destinations this year from 40. Analysts said some of=
=20
the aircraft in the pending deal may be leased, possibly from American=20
International Group unit International Lease Finance Corp (ILFC), which has=
=20
worked with Qatar in the past. The deal would extend Airbus's lead in new=20
orders this year as it already has 197 versus 38 for Boeing, which has not=
=20
netted a single order so far at the Paris show, the world's biggest=20
aerospace fair. Emirates and Qatar are among only a few airlines which=20
still boast the financial firepower necessary to place big jet orders.=20
Airbus aims to deliver 300 jets this year, while Boeing expects to deliver=
=20
about 280 jets. Airbus, based in Toulouse, France, is 80% owned by European=
=20
aerospace giant EADS, with the rest held by BAE Systems of the UK.


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