WASHINGTON – Airbus SAS announced Thursday that it will move ahead with plans to build a $5.7 billion double-aisle, long-range commercial aircraft to compete with a new Boeing plane, and offered not to accept for now aid typically provided by European governments to launch aircraft programs.
Airbus said it made the offer not to accept $1.9 billion in aid as a way to encourage negotiations in a trade dispute between the United States and Europe sparked by rivalry between Airbus and the Boeing Co. Airbus did not rule out accepting the money at a later date.
“We’re willing to put that on the table … as part of negotiations with the U.S.,” said Allan McArtor, chairman of Airbus North America Holdings Inc., at a briefing with reporters in Washington, D.C., on Thursday. “It’s a meaningful gesture.”
Airbus’ decision to move ahead with the A350 is a change of direction from just a year ago when it dismissed Boeing’s plans for a midsize, double-aisle plane that is lighter-weight and more fuel efficient. At the time, Airbus was busy promoting its supersize aircraft, the 555-seat A380, which Boeing has not yet decided to counter.
Many analysts note that the A350 shares many characteristics of the Boeing 787. The A350 is a twin-engine plane that will replace the older, four-engine A340-300. Like the new Boeing plane, the A350 will be made of different materials than today’s planes, which are nearly all aluminum, and will feature engines designed to be quieter than those on today’s planes and burn less fuel.
The A350’s wings will be made of an ultrahard composite material, and its body will be made of an aluminum-lithium alloy. The materials, along with high-tech engines made by General Electric Co. and Rolls-Royce PLC, are creating a new era in aviation in which planes can safely fly farther with two engines instead of four.
The A350 will fly up to 8,800 nautical miles – to most of Asia, the Middle East and Africa from Washington. The smaller model will seat 253 passengers and the larger version will seat 300. The cabin will be designed with two seats along each side of the plane and a row of four seats in the middle. Airbus and Boeing estimate air carriers will need about 3,000 of this aircraft type over the next 20 years. The A350 list price is $160 million per aircraft for the smaller version and $180 million for the larger version.
“This is a reality: Planes are getting smaller and longer- range,” said Richard Aboulafia, aerospace analyst at the Teal Group Corp. “There’s no reason twin-engine planes can’t go anywhere, technologically.”
Airbus is two years behind Boeing, which plans to deliver its 787 to its first customer in 2008. Boeing has received 174 firm orders and 99 commitments from customers. Airbus has 140 firm commitments for its aircraft, and executives said they expect to line up orders for 200 planes this year.
“We’re not surprised by today’s announcement,” said Randolph Baseler, vice president of marketing for Boeing. “We’re surprised it took them so long to respond to the 787.”
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