September 27, 2004
European plane maker Airbus is thinking seriously about developing a rival to Boeing's planned 7E7 jet that would have more seats and be based on technologies developed for its A380 superjumbo jet.
In an interview with French financial daily Les Echos, Airbus Chief Executive Noel Forgeard confirmed for the first time that the manufacturer was discussing a new plane, dubbed the A350, with some airline clients.
"This is an area we are thinking about seriously," Forgeard said. "We are actively evaluating the market."
Forgeard said the planned Boeing plane, which is expected to seat roughly 240 passengers in its initial version in 2008, would be "a little small."
"Performance would be better with a bigger plane of about 270 seats," he said. "We are discussing such a plane with a number of clients. It would be a very different plane than the A330 and that's why we have called it the A350."
Since Boeing gave the final go-ahead for the 7E7 in April, analysts have expected Airbus to respond with a derivative of its A330-200, a plane it launched back in 1998.
Forgeard said the A350 would be based on technologies already developed for the 555 seat A380 superjumbo jet that airlines will begin flying in 2006 and would be fueled by a new generation of engines.
The 7E7, dubbed the Dreamliner, is Boeing's answer to the A380. It will be based on lighter materials and have more efficient engines, making it less costly to fly, Boeing says.
In the interview, Forgeard also touched on the ongoing dispute with Boeing over government aid. He said he expected the United States either to take a case to the World Trade Organization (WTO) or put an end to the 1992 bilateral accord with Europe that lays out the ground rules for government support of the aircraft industry.
If it chose to end the 1992 accord -- which it could with a year's notice -- Forgeard said programs under development like the 7E7 or any Airbus response to that plane would no longer be covered by the agreement.
Forgeard confirmed that Airbus would deliver more than 305 planes this year and said new jet orders would be in line with 2003 levels or slightly better.
He also said there was a risk that Airbus would not deliver the 29 planes that US Airways still has on order, but this would not affect 2005 or 2006 deliveries. US Airways sought bankruptcy protection for the second time in two years earlier this month.
Separately, the co-chief executive of Airbus parent company EADS said the plane maker hopes to win an A380 contract with China by the end of the year. "I think that, as we had aimed for at the start of the year, we will win an A380 order quite quickly in China. I hope that will be done before the end of 2004," Philippe Camus told LCI television.
(Reuters)