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UnitedFreak · 01-30-2003, 04:48 PM

MADRID, Jan 30 (Reuters) - Spanish airline Iberia (Madrid:IBLA.MC - News) said on Thursday it had decided to order nine long range Airbus A340-600 planes, with options for another three, to replace aging Boeing 747s in its fleet.

Iberia said in a statement three Airbuses would be delivered in 2004, five in 2005 and one in 2006 and the deal came with a guarantee from Airbus for the residual value of the planes.

The firm, one of the few European airlines to have shown profit growth in 2002, said the deal would considerably increase profitability on long-haul services, increasing income per passenger kilometre and reducing fuel, maintenance and crew costs as well as the cost of capital.

European manufacturer Airbus and its U.S. rival Boeing Co (NYSE:BA - News) had been locked in a fierce contest for the order as airlines worldwide scale back their fleet expansion plans and aircraft orders dry up.

Airbus looks likely to overtake Boeing as number one in the aircraft industry in 2003.

Boeing expects to deliver 280 aircraft from Seattle this year, down 27 percent from 2002 and lagging far behind Airbus which plans to ship 300 jets over the same period. But Airbus also concedes an Iraq war could cut that number.

In mid-afternoon trading on the New York Stock Exchange Boeing shares were up 1.0 percent at $30.89 in a falling market.

01-30-2003, 04:48 PM	#1
UnitedFreak Senior Collector Join Date: Dec 2000 Location: Atlanta Posts: 194	Another Order for Airbus... MADRID, Jan 30 (Reuters) - Spanish airline Iberia (Madrid:IBLA.MC - News) said on Thursday it had decided to order nine long range Airbus A340-600 planes, with options for another three, to replace aging Boeing 747s in its fleet. Iberia said in a statement three Airbuses would be delivered in 2004, five in 2005 and one in 2006 and the deal came with a guarantee from Airbus for the residual value of the planes. The firm, one of the few European airlines to have shown profit growth in 2002, said the deal would considerably increase profitability on long-haul services, increasing income per passenger kilometre and reducing fuel, maintenance and crew costs as well as the cost of capital. European manufacturer Airbus and its U.S. rival Boeing Co (NYSE:BA - News) had been locked in a fierce contest for the order as airlines worldwide scale back their fleet expansion plans and aircraft orders dry up. Airbus looks likely to overtake Boeing as number one in the aircraft industry in 2003. Boeing expects to deliver 280 aircraft from Seattle this year, down 27 percent from 2002 and lagging far behind Airbus which plans to ship 300 jets over the same period. But Airbus also concedes an Iraq war could cut that number. In mid-afternoon trading on the New York Stock Exchange Boeing shares were up 1.0 percent at $30.89 in a falling market.