=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/n/a/2006/05/10/financial/= f102729D95.DTL --------------------------------------------------------------------- Wednesday, May 10, 2006 (AP) Airbus Says No Decision on A350 Redesign (05-10) 10:27 PDT PARIS, France (AP) -- Airbus insisted Wednesday no decision had been made on whether to revamp the design for its A350 airliner, amid reports the European aircraft maker has overhauled plans for the long-range, fuel-efficient jet to include a larger variant. "We continue looking at further possibilities together with the airlines= ," Airbus spokeswoman Barbara Kracht said. "No decision has been made." Chief Executive Gustav Humbert recently said the company was considering modifications to the A350's design, after strong criticism from airlines and jet leasing companies including International Lease Finance Corp. But investment bank UBS raised its target for shares in Airbus parent European Aeronautic Defence and Space Co. to 40 euros ($50.80) from 38 euros ($48.25) on Wednesday, saying it expected a redesign to be announced. Merrill Lynch announced a similar move on Monday, upgrading EADS to "buy" from "neutral." On the same day, Flight International magazine reported that Airbus planned radical changes to the A350 models, including a wider fuselage. Citing internal Airbus documents, the magazine said the revised A350 wou= ld have larger wings and more powerful engines to support a new, larger A350-1000 variant to compete directly with Boeing's 777-300ER. The twin-engined Boeing plane has been winning customers away from the Airbus A340, whose four-engine design makes it less fuel-efficient — a critical drawback when oil prices are running high. In its report, UBS said the expected A350 revamp "also solves the proble= ms of the troubled A340." A more ambitious A350 design is likely to cost considerably more than the 4.5 billion euros ($5.7 billion) already budgeted, however, and delay the plane's introduction beyond the current target date of 2010 — already two years behind the rival Boeing 787 Dreamliner. EADS shares have underperformed for several months, UBS added, offering "an excellent buying opportunity." The stock rose 3.3 percent Monday and 1.6 percent Tuesday after reports = of a possible redesign emerged. On Wednesday, it closed 0.4 percent higher at 31.48 euros ($39.97). -----------------------------------------------------= ----------------- Copyright 2006 AP