Star Airlines May Delay Plane Orders To Hear More About Airbus A350 By Steven Lott 12/15/2004 12:16:19 PM The 15 Star Alliance member carriers decided to move ahead with a complete analysis and comparison of the Boeing 7E7 and Airbus A350, which could be seen as a setback for Boeing, as several airlines may delay potential orders while waiting for the results of the study. The first two significant orders already came from Star as All Nippon Airways and partner Air New Zealand placed separate orders. However, during their chief executive board meeting in Thailand over the weekend, the CEOs decided they want a comprehensive and comparative review of the 7E7 and A350 as part of their strategy to cooperate and set a single standard of aircraft for all members. The DAILY interviewed several Star airline leaders in Bangkok to gauge their interest in the new planes. "We have heard from Boeing, but we didn't have any detailed information on the A350," said Asiana President C.B. Park. He noted that Boeing has some "good innovations" to increase efficiency and comfort. However, with the green light last week to start selling the A350, Park wants details on that aircraft. The Star board decided to have "experts" compare the two models and report back to the CEOs. Their next meetings are tentatively planned in June and December 2005. "Many are waiting for the comparison," he said. While Asiana does not expect to make a decision for some time, Polish LOT Airlines has been in Boeing's sights for more than a year. LOT Polish Airlines said a year ago that they were looking at a fleet order before 2006, when some of the airline's 767 leases expire (DAILY, Oct. 28, 2003). CEO Marek Grabarek told The DAILY that a decision could come as soon as the airline's supervisory meeting Dec. 22, although he cautioned that "we are not in a hurry." Grabarek believes the airline has three choices -- buy the A330, buy the 7E7 or stick with 767. However, there is now a new option with A350, "which is something we may want to consider," he said. The decision may take several more weeks beyond the Dec. 22 meeting. Singapore Airlines also expressed some interest in the A350 after deciding not to order the 7E7 over the summer (DAILY, Aug. 26). CEO Chew Choon Seng said his analysis of the 7E7 "failed to yield a return on investment that would be sufficient for us to create economic value and did not meet the cost of capital." Instead, the airline ordered Boeing 777-300s, which Chew admitted is "a bit too big to have a sufficient scale of frequencies to some of the nearer points that we would like to serve." The SIA CEO is interested in hearing more about the A350, as he has yet to hear the plane's proposed 'operating characteristics.' The A350 would be used on similar routes and for similar missions as the 7E7, he said. At the end of the day, "the manufacturer that can best help us make a viable economic operation will be the one who gets the order." Roger EWROPS