BA says second part of longhaul aircraft competition 'wide open' |
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Wed, 21 Feb 2007 10:14
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LONDON (AFX) - The second stage of the competition to supply British Airways PLC's longhaul aircraft into the next decade is 'wide open' despite the UK flag carrier's choice of Boeing Co for an initial eight aircraft, said Robert Boyle, BA's commercial director.Earlier, BA announced it has ordered four Boeing 777-200 ER aircraft for delivery during early 2009 and has taken options on four more for delivery the following year. These aircraft have list prices of 201 mln usd each.Speaking to reporters Boyle stressed the decision to opt for Boeing 777s over EADS' Airbus A330s was 'a very close decision''What tipped the balance in the end was the fact that for this initial order, which is for a small number of aircraft, it's easier to fit them in with an existing fleet,' he said, noting that BA already has 43 Boeing 777s.'I do want to emphasise that the competition which is still running for growth and replacement aircraft into the next decade, which will be the much larger order, is still absolutely wide open,' Boyle continued.He said considerations about small fleet compatibility with existing aircraft will not apply for the second part of the competition.'The decision ... to go with Boeing for the first order in no way suggests the outcome of the second order,' he added.BA said negotiations continue with General Electric Co and Rolls Royce Group PLC about which engines will be used on the new Boeing 777 aircraft.The airline's competition for additional and replacement longhaul aircraft to be delivered in the next decade is considering the Airbus A330, Airbus A350, Airbus A380, Boeing 787, Boeing 777 and Boeing 747-8.The first aircraft to be replaced will be 20 Boeing 747s and 14 Boeing 767s, the oldest of which are currently 17 years old.BA is also looking to make additional orders or options to further expand the fleet -- four aircraft for 2009 and a possible further four for 2010.Boyle said the result of the second stage of the competition will be announced in the second half of 2007.BA currently has 43 Boeing 777 aircraft in its fleet, of which 27 have GE engines and 16 have Rolls Royce engines. The airline's other longhaul aircraft are 57 Boeing 747-400 and 14 Boeing 767-300.In addition, BA has turned options for four Airbus A320 shorthaul aircraft into firm orders. The aircraft will be delivered in 2008 to replace Airbus A320 family aircraft that are leaving the fleet.At 8.23 am shares in BA were down 0-3/4 pence at 572-1/2 pence, valuing the business at 6.59 bln stg.james.davey@thomson.comjdd/vlbCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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BA orders 4 Boeing 777-200 aircraft, takes options on 4 more UPDATE 