Airlines Deals

European plane-maker Airbus showcased its revamped A350 passenger jet and US rival Boeing revealed new orders as they went head-to-head yesterday at the Farnborough Internation-al Airshow.

Airbus, looking to restore credibility after a recent management crisis, presented a revamped version of its long-haul A350, called the X-WB, with higher seating capacity and improved fuel efficiency.

The new jet is intended to compete with Boeing’s 787 Dreamliner and 777 long-haul planes, but the cost of developing the project is set to double to $10bn (7.9bn euros), Airbus’s parent company Eads said at the weekend.

Meanwhile, it emerged that Boeing has experienced production delays with the 787, owing to problems with suppliers and excess weight.

“We are a little over on our weight,” Alan Mulally, head of Commercial Airplanes at Boeing, told reporters at the start of the airshow.

He added that there were some problems with suppliers, which was also delaying production, but that the original timetable for deliveries in 2008 would be respected.

“Some partners are a little behind on the schedule but we’re working with them on recovery plans to catch up,” Mulally said.

He added that Boeing, which has 363 orders for the 787 since its launch in 2004, was in negotiations with 30 other airlines regarding another possible 1,000 orders.

“The response has been phenomenal,” he told reporters, adding that production would be increased to satisfy the demand.

Among the Boeing orders announced yesterday, the low-cost Indonesian airline Lion Air said it would buy 30 more 737-900ER single-aisle planes for more than 2.2bn dollars, bringing its total order to 60.

Boeing, which amid the crisis at Airbus is signing larger orders than its rival, also confirmed that a Gulf country was behind a firm order for 20 777 Boeing commercial jetliners, worth about $4.9bn.

LoadAir Cargo, a recently-launched air freight operation based in Kuwait, signed an order with Boeing yesterday for the delivery of two 747-400 extended-range freighters worth $494mn.

Meanwhile, Indian low-cost airline GoAir has ordered 10 single-aisle Airbus A320s for about $670mn (535mn euros) with an option to purchase 10 more, the carrier announced here yesterday.

The planes, which seat 180 passengers, will be delivered starting in 2007, said GoAir managing director Jeh Wadia. “These aircraft will enable us to develop our network and introduce new routes”, he said.

Airbus’s new boss Christian Streiff, speaking at the Farnborough International Airshow in southern England, said he would seek shareholder approval in October to begin production of the mid-sized A350 X-WB (Xtra Wide Body), which will have between 270-350 seats.

“X-WB is for extra wide body, for extra comfort, for extra efficiency, and for always going the extra mile for our customer,” Streiff said at the airshow, a traditional battleground between aerospace firms competing for orders.

Streiff, making his first public appearance as Airbus chief, added that the company was on course for the A350 X-WB to enter service in mid-2012.

He added: “I intend to seek approval of both our shareholders (Eads and BAE Systems) for a launch in the early days of October.

“I have already got the full support of both sides, of all our shareholders of this way of going ahead towards the industrial launch (start of production).”

The first version of the A350 had attracted 182 firm orders and commitments from 14 customers.

Airbus has faced a torrid time in recent months after revealing production problems with its A380 superjumbo jet in June.

Those problems led to a management shake-up at Airbus and its parent company EADS - including the appointment of Streiff.

“Airbus is in the middle of a serious crisis in our relationship with our customers,” the Frenchman told reporters yesterday at the week-long airshow that takes place every two years.

“This is something we are taking extremely seriously and we know the competition is taking advantage of this today.”

As a way of restoring confidence among Airbus customers, Streiff said he planned in the “next months” to launch broad action plans aimed at creating greater competitiveness and reliability within his group.

“I am convinced (that) Airbus will get out of this crisis better, stronger than before,” he added.

After Streiff spoke, crowds thronged balconies in scorching temperatures to witness a flying display by the A380 - the world’s largest passenger aircraft, which is due to enter service in 2007.