SFGate: Singapore Airlines Orders Airbus Planes

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Friday, July 21, 2006 (AP)
Singapore Airlines Orders Airbus Planes
By JANE WARDELL, AP Business Writer


   (07-21) 09:38 PDT LONDON, United Kingdom (AP) --

   Singapore Airlines Ltd. gave Airbus a significant boost Friday by orderi=
ng
20 of the European plane manufacturer's new A350 XWB planes, becoming the
first airline to commit to the revamped aircraft.

   The Asian carrier said it also plans to exercise an option to pick up ni=
ne
more of Airbus' double-decker A380s, despite anticipated delays to the
delivery of the superjumbo — pushing Airbus' total orders or
commitments at the Farnborough International Airshow beyond those reached
by U.S. archrival Boeing Co.

   The contract for all 29 planes is worth around $7.5 billion, the Asian
carrier said.

   On the final of five trade days at the show before it opens to the publi=
c,
Airbus also revealed that German low-cost airline Blue Wings AG had signed
a nonbinding agreement to purchase 20 A320 aircraft.

   In contrast, Boeing announced just one deal Friday — an order from
Spanish charter airline Futura International Airways for three Boeing
Next-Generation 737-800s.

   The deals took Airbus' total orders or commitments at the biennial
airshow, one of the biggest events on the aviation calendar to 182
aircraft valued at $21.5 billion.

   Boeing declined to reveal its own numbers for the show, but AP
calculations based on publicly announced deals put its new business at 79
aircraft worth just over $10.2 billion.

   Boeing spokesman Charlie Miller said the Chicago-based company did not
want "to play the numbers game for one week out of 52" and stressed
Boeing's strong firm orders for the first half of the year when it far
outstripped Airbus with 496 orders to 117.

   All values are based on catalog prices, since the discounts that airlines
typically negotiate are never disclosed.

   Airbus, parent company of European Aeronautic Defence & Space Co.,
unveiled the A350 XWB on Monday as it sought to reassure investors it was
back on track after last month's shock warning of delays in deliveries of
the A380 superjumbo.

   "The order for more A380s represents an enormous vote of confidence in t=
he
program, whilst the selection of the all new A350 XWB reasserts Airbus'
determination to compete vigorously in the twin engine, wide-body market,"
said Airbus Chief Executive Officer Christian Streiff.

   Airbus' airline customers had been increasingly vocal about their
dissatisfaction with the previous A350 program. In June, Singapore
Airlines signed a $4.52 billion deal for 20 Boeing 787-9 aircraft, a rival
for Airbus' problem-plagued A350.

   The new A350XWB — for "extra-wide body" — seeks to beat
Boeing's Dreamliner at its own game. It offers bigger windows, a roomier
cabin, even greater fuel efficiency and a larger stretch version seating
350 passengers. The plane has a list price of $185 million, Airbus Chief
Commercial Officer John Leahy said at the launch on Monday.

   "It is heartening that Airbus has listened to customer airlines and has
come up with a totally new design for the A350," said Singapore Airlines
Chief Executive Chew Choon Seng.

   Chew said the technical specifications will make the new Airbus plane "a
very competitive aircraft in its class for the coming decades."

   The chairman of Dubai-based carrier Emirates gave cautious approval and
British Airways PLC said it will study the Airbus blueprint before
deciding on new mid-sized planes.

   Airbus has sold more planes than rival Boeing for the last five years bu=
t,
despite its success at Farnborough, that looks set to change this year. In
the first half of 2006, Airbus took orders for just 117 planes while
Boeing won close to 500 orders. -------------------------------------------=
---------------------------
Copyright 2006 AP

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