Potential 7E7 jet order from Qatar may hit 60

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http://seattletimes.nwsource.com/html/businesstechnology/2002086753_qata
r10.html

=20

Qatar Airways continues to have keen interest in Boeing's new 7E7 and is
considering a 60-plane order, up from a possible 40-jet deal discussed
earlier this year, a source familiar with negotiations said yesterday.=20

At Boeing's proposed 7E7 list price of $120 million, the deal would be
worth more than $7 billion before discounts, which tend to be generous
on bulk purchases.=20

The transaction would likely include 30 firm orders and 30 options, the
source said, and would boost Boeing's chances of hitting its goal of 200
7E7 orders by year's end. To date, Boeing has 52 firm 7E7 orders and
preliminary agreements for 50 more.=20

But to close the deal with Qatar, Boeing may need to accelerate its
timetable for introducing a stretch version of the 7E7.=20

Dubbed the 7E7-9, the larger model would carry 257 passengers in a
three-class seating configuration, versus 217 passengers in the baseline
7E7-8.=20

Mike Bair, senior vice president for the 7E7 program, said in July that
Boeing had pushed back the introduction of the 7E7-9 to 2012, from 2010.


The decision did not sit well with Qatar and other Mideast airlines such
as Emirates, which had said publicly the 7E7-8 was too small for their
needs.=20

"We're ready to sign a [memorandum of understanding] from the moment
Boeing crystallizes the definitions of the -9," Qatar Airways Chief
Executive Akbar Al-Baker told ATWOnline yesterday in London. "We will
not go for the 7E7 if they [Boeing] don't specify the -9. We want to
operate a family of aircraft, not just one aircraft type."=20

Al-Baker said Qatar's order would include only eight or 10 of the
7E7-8s.=20

His sentiments echoed those of Maurice Flanagan, chairman of highly
regarded Emirates airline, last summer.=20

"What we want is not yet available," Flanagan told The Seattle Times in
June. "[Boeing's] focus right now is on the smaller airplane. By and
large, airlines that are interested in long-haul traffic for major
destinations are looking for something bigger."=20


Boeing at the time did not appear flexible.=20

"When or if Boeing decides to build the stretch airplane, we could sell
that plane in that part of the world. But right now our focus is
strictly on the -8," Doug Groseclose, Boeing's former vice president of
sales for the Middle East and Africa, said in June.=20

Groseclose has since left Boeing and been replaced by Lee Monson, who
previously sold Boeing business jets in the Middle East and elsewhere.=20

The baseline 7E7-8 is to debut in 2008. Now Boeing apparently is again
considering an earlier launch date for the 7E7-9 at customers' request.=20

Lori Gunter, a Boeing spokeswoman, said the 2012 target has never been
set in stone. "The market will decide when that product comes on line."=20

Gunter had no comment on the status of discussions between Qatar and
Boeing.=20

Qatar's initial 7E7 talks with Boeing were for 20 firm orders and 20
options. The airline decided to increase the quantity after a
business-plan review indicated the fast-growing airline had
underestimated how many of the planes it would need by 2012, the source
said.=20

Relaunched by Al-Baker in 1997, Qatar is an all-Airbus carrier, with a
35-plane fleet that will grow to 52 jets by 2009.=20

Qatar has asked Airbus to delay deliveries of the two 555-seat A380 it
has on order until the second quarter of 2009, Al-Baker added yesterday,
due to construction delays at the new Doha International Airport.=20

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