Post by corsair67 on Oct 19, 2006 11:33:33 GMT 12
BA sets up $13bn contest between Boeing and Airbus
Angela Jameson
October 19, 2006.
BRITISH AIRWAYS is pitting Boeing against Airbus in a competition for an aircraft order that could be worth at least $US10 billion ($13.25 billion).
The airline invited the two aircraft makers yesterday to compete to replace the older Boeing models in its long-haul fleet.
At the same time, engine makers Rolls-Royce, General Electric and Engine Alliance were invited to bid, as were other suppliers of components.
The invitations to tender are the first stage in a purchasing plan that is likely to take almost a decade to reach fruition. Initial responses from the aircraft makers are expected by the end of the year, with orders placed next year.
BA wants to buy 10 additional aircraft in the next couple of years and replace 20 Boeing 747s and 14 Boeing 767s by about 2014, by which time they will be 25 years old.
In the past BA has preferred Boeing for its long-haul fleet, but it is asking Airbus to compete in the hope of achieving a competitive price for the new aircraft.
BA chief executive Willie Walsh said he believed the airline's timing was good in approaching the manufacturers with a timetable for delivery that fell several years after the peak of the companies' existing commitments. He said problems over production and delivery delays at Airbus had not deterred BA from considering the European aircraft maker.
"We anticipated that there would be production problems with these new aircraft, and we are fortunate not to be the first in the queue," Mr Walsh said.
Despite the delays, BA said it would consider the Airbus A380 superjumbo jet, as well as the new offering from the maker, the A350 XWB, which is designed to compete with the Boeing 787.
The Boeing aircraft that will be under consideration are the 787 and the "stretch" 747-800. BA already has 10 options on new Boeing 777s, to be delivered in 2010. It is thought that BA could wipe 20 per cent off list prices of between $US160 million and $US316 million.
However, BA cannot order aircraft until its pound stg. 2.1 billion ($5.2 billion) pension deficit is resolved. It is in dispute with unions over pension proposals, and Mr Walsh said the invitation to tender was not an attempt to put pressure on employees to accept the pension deal that is on the table.
The Times
