=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/12/22/f= inancial0523EST0450.DTL --------------------------------------------------------------------- Wednesday, December 22, 2004 (AP) Japan Airlines to purchase 30 of Boeing's 7E7 jets YURI KAGEYAMA, AP Business Writer (12-22) 02:23 PST TOKYO (AP) -- Japan Airlines said Wednesday that it has selected Boeing Co.'s new 7E7 passenger jet to replace a fleet of older aircraft -- the latest development in the rivalry between the U.S. aircraft maker and Airbus of Europe to woo Asian carriers. Japan Airlines said it will purchase 30 of Chicago-based Boeing's planned aircraft, called the 7E7 Dreamliner, with an option to order 20 more of both the long-range 7E7-8 and the short-to-medium-range 7E7-3. JAL spokesman Tatsuo Yoshimura said the price of the deal was not disclosed, but said the catalog price for 30 7E7 jets is estimated at $4 billion. The list price is generally higher than what the jets end up costing. The new JAL fleet is planned for 2008 and will be used on domestic and international routes, the Tokyo-based company said in a statement. The 7E7 will replace JAL's medium size jet fleet, including 36 Boeing B767 jets, and 22 A300-600 from Airbus. The Dreamliner is far smaller than the A380 being developed by Boeing's European rival, a double-decker that seats more than 500 people. Boeing is pouring its efforts into the fuel-efficient 7E7. Its three models accommodate between 217 and 289 passengers. JAL said the 7E7 will have lower fuel consumption than its current fleet, and new technology engines would be quieter and produce less exhaust emissions. In Paris, Airbus SAS said Tuesday that Spanish airline Air Europa had become the first to commit to buying the A350, the jet Airbus is developing to rival the Dreamliner. Air Europa signed a memorandum of understanding to buy 10 A350s worth about $2 billion at list price with options on two more. In April, Japan's No. 2 carrier, All Nippon Airways Co., placed an order for 50 7E7 jetliners in a deal worth about $6 billion, making it the first carrier to purchase Boeing's next-generation aircraft. Boeing is targeting Asia as a market for the 7E7 passenger jet and expec= ts to finalize sales of about 200 7E7s by the end of this year. Japan's major heavy machinery makers, such as Ishikawajima-Harima Heavy Industries Co., Kawasaki Heavy Industries Ltd. and Mitsubishi Heavy Industries Ltd., are already involved in the 7E7 Dreamliner project and are helping develop the aircraft, such as the major wing parts and engines. ---------------------------------------------------------------------- Copyright 2004 AP