SFGate: Boeing-Airbus Dogfight at Paris Air Show

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Monday, June 18, 2007 (AP)
Boeing-Airbus Dogfight at Paris Air Show
By JANE WARDELL, AP Business Writer


   (06-18) 06:52 PDT LE BOURGET, France (AP) --

   Airbus racked up a series of big orders at the opening Monday of the
world's biggest air show, stealing some early limelight from U.S. rival
Boeing Co.

   With the manufacturers' intense competition again expected to be a
dominant theme of the weeklong show at Le Bourget, north of Paris, both
looked to make a splash from the get-go, with billions of dollars worth of
orders announced.

   Airbus booked orders from US Airways, Qatar Airlines, Emirates, Jazeera
Airways and Nouvelair for a raft of planes, including its problem-plagued
A350 and superjumbo A380 models.

   Airbus sales chief John Leahy predicted Monday that the planemaker will
land more than 280 orders over the week — airlines often reserve big
announcements for the show to ensure maximum impact.

   At the last Le Bourget show in 2005, Airbus announced orders worth $33.5
billion, double Boeing's $15 billion, based on list prices — which
are usually discounted for the deals.

   Leahy noted that Airbus racked up 280 "announcements" — including
memorandums of understanding and other agreements that were not firm
orders — two years ago.

   "I would expect to exceed that this year, by how much it will exceed, why
don't we wait until Friday to see," he said.

   US Airways Group Inc. was one of the first to announce an order Monday,
ordering 60 of Airbus' A320 single-aisle aircraft and 32 widebody
aircraft. It also increased its previously announced order of 20 A350s by
two to 22 A350 XWBs in both the 800 and larger 900 series configuration.

   The A320s will replace Boeing 737-300/400s, which will be eliminated from
the fleet, the carrier said. It added that it expects to take delivery of
the first A350-800 in 2014, becoming the North American launch customer
for the fleet type.

   In another major order for the Toulouse-based company, GE Commercial
Aviation Services ordered 60 of the A320 family aircraft in a deal worth
around $4.4 billion at list prices.

   Qatar ordered 80 A350 XWBs, three A380s and three A320 family aircraft.
The A350 order was a confirmation of Qatar's' earlier commitments to buy
the 80 jets. Qatar Airways Chief Executive Akbar Al Baker said the order
for the A350s is worth $16 billion.

   Two of the orders for the A380, Airbus's flagship double-decker plane, a=
re
conversions of earlier options into firm orders, he said, and the airline
is taking one new order, bringing its total order for A380s to five. The
three firm orders together are worth about $750 million, he said.

   Wiring and other technical problems are behind a costly two-year delay in
delivery of the A380. The holdup is set to cut profit by 4.8 billion euros
($6.2 billion) for Airbus parent European Aeronautic Defense & Space Co.
NV over the next four years.

   Emirates is by far the biggest single customer for the A380. It initially
ordered 43 A380s and took another four in May. Emirates is believed to
have obtained significantly improved financial terms for these aircraft
and the latest batch of eight.

   Jazeera Airways signed an order for 30 single-aisle A320 jets worth
between $2.1 billion and $2.4 billion based on list prices.

   Another two orders for the A320 aircraft came from Nouvelair, a Tunisian
charter airline based at Monastir that belongs to the Tunisian Travel
Service group.

   Emirates ordered an additional eight A380s, a deal estimated to be worth
about $2.5 billion. The latest order brings to 55 the number of A380s
ordered by the Dubai-based airline.

   However, Emirates remained undecided about whether it will sign up for
Boeing's new 787 Dreamliner or its wide-bodied Airbus rival, the A350 WXB.

   "We've got some talking to do to both Boeing and Airbus with regard to t=
he
commercial terms of the deal, but I think we're in a good position to make
an aircraft decision in the next few months," said Emirates President Tim
Clark.

   Clark said the carrier would select only one of the aircraft, rather than
buying some of each.

   Airbus was forced last year to launch a costly redesign of the planned
A350 after airlines scorned its earlier model — resulting in the
extra-wide-body or XWB model — and is having to renegotiate existing
orders.

   Prior to Monday's orders, Airbus had only 13 firm orders for the mid-siz=
e,
long-range plane, compared with 584 orders for Chicago-based Boeing's
Dreamliner — the first commercial jet made of light, sturdy,
carbon-fiber composites instead of aluminum.

   Scott Carson, the head of Boeing Commercial Airplanes, said Monday that
the Dreamliner was on track for test flights in August or September, and
delivery to its first customers in May.

   Carson also announced Monday that GE Commercial Aviation Services had
ordered six of its 777 freighters, worth $1.42 billion at list prices. The
order takes the number of 777s ordered by GECAS to 39, including 14
freighters.

   In another deal for Boeing, Jakarta-based Lion Air ordered an additional
40 737-900ER planes. Valued at more than $3 billion at list prices, that
brings Lion Air's combined orders for the 737-900ER to 100.

   The Paris show comes amid revived fortunes for the commercial airline
industry. After two years in the red, the industry will make a profit of
just over $5 billion this year, despite rising fuel costs, says the
International Air Transport Association, whose 250 members claim to
represent 94 percent of international air traffic.

   Away from the rivalry between Boeing and Airbus, Rolls-Royce PLC said
Monday it had received the largest-ever firm engine order for its civil
aerospace business from Qatar. The $5.6 billion order is for Trent XWB
engines to power Qatar's new fleet of 80 Airbus A350 XWB twinjets, with
deliveries beginning in 2013.

   ___

   Associated Press writers Angela Charlton at Le Bourget and John Leicester
in Paris contributed to this report. --------------------------------------=
--------------------------------
Copyright 2007 AP

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