Tue, Nov 09, 2004
Up To 80 Short-Haul Aircraft At Stake
Boeing and Airbus may be locked in a battle over government
subsidies, but there's a much more tangible war being fought in the
marketplace. It's a back and forth war fought with financial
calculators and marketing presentations, but a war nonetheless --
and as that war is fought in Asia, Airbus may soon score a big
AirAsia, based in Malaysia, currently flies all Boeing aircraft.
But the airline now says it's looking at the purchase of up to 80
short-haul aircraft from Airbus in a deal that could be worth
approximately $5.2 billion at face value.
Reuters quoted an anonymous source at AirAsia who said, "We have
not finalized but it looks more like Airbus because they have more
flexibility to be competitive in the whole package."
The Wall Street Journal Monday reported the Airbus price was
well below Boeing's. AirAsia plans to order 40 aircraft with an
option for 40 more by 2006.
The aircraft being contemplated by AirAsia are reportedly A320s.
There was no immediate indication about which manufacturer would
supply the aircraft powerplants.
Word of the AirAsia deal comes on the heels of a decision by Air
Berlin and its Austrian partner, Air Niki, to purchase 70 Airbus
planes in a deal reportedly worth $4.5 billion.
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