Airbus deals a blow to Boeing with A350 success
By Mark Odell in London
Financial Times
Published: December 21 2004 21.00 | Last updated: December 21 2004 21.00
Airbus on Tuesday scored another success over Boeing by securing the first commitment for its planned A350 mid-market jet.
The European aircraft maker has pitched the aircraft against its rival's 7E7 Dreamliner, the US group's first all-new aircraft in more than a decade. Toulouse-based Airbus said it had signed a memorandum of understanding with Air Europa, Spain's third-largest airline, which envisages delivery of 10 aircraft, with a further two on option, between 2010 and 2012.
The Spanish carrier said it had opted for engines made by General Electric, so far the only engine choice available on the A350. Rival Rolls-Royce is hoping to secure a position as the competing engine supplier.
Airbus, which only got board approval to start marketing the A350 to airlines just over a week ago, has not said how many commitments it needs before it will officially launch the aircraft.
The announcement deals a double blow to Boeing. Air Europa is currently an all-Boeing operator with a fleet of 737 and 767 aircraft. It also said it was adding other long-range Airbus aircraft to its fleet, taking one leased A340 next year and two leased A330s in 2006.
It is also a setback for Boeing because it is struggling to demonstrate that its much-vaunted 7E7 has made its expected sales breakthrough.
A succession of Boeing executives led by Alan Mulally, chief executive of commercial aircraft, have promised there would be 200 firm orders by the end of this year.
As yet only 52 have been booked, and Boeing's sales campaign looks increasingly to have lost momentum, a key aim of Airbus’s marketing campaign for the A350.
Boeing has also been losing out to Airbus for key orders in the fast-growing low-cost airline sector, regarded as the US company's bastion which it had dominated with the 737.




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