Airbus appeases Qatar, saves $16 billion A350 order

Published 9:00 pm Monday, March 26, 2007

Apparently, threats work.

A month ago, Qatar Airways said it would look at Boeing’s 787 Dreamliner unless Airbus could improve its A350 XWB’s design. As the launch customer for the European company’s answer to Boeing’s Dreamliner, Qatar signed its first A350 request at the Paris Air Show in 2005.

Speaking in Vietnam today, Qatar’s chief executive said he’ll sign an agreement with Airbus in the next few weeks. The airline’s deal for 80 A350 jets is worth about $16 billion at list prices.

“We have got what we wanted from them,” the chief executive said, according to a Bloomberg report.

Airbus has tweaked the plane’s design several times over the past few years. And Qatar felt the plane wasn’t advanced enough. The Persian Gulf airline gave Airbus until this June’s Paris Air Show to make improvements or Qatar would go shopping at Boeing.

For the complete story, http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=BA:US&sid=aWcFWGWHMDAU#.