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 victory.

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.

FMI: www.airbus.com