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Thursday May 15, 2008
Reuters
Honeywell Lands USD$1.5 Bln Contract For Airbus A350

Honeywell, the world's largest maker of cockpit electronics, said on Tuesday it had received a USD$1.5 billion contract to supply flight management systems for Airbus's forthcoming A350XWB jet.

The deal is Honeywell's second large order related to the mid-sized, long-range A350 wide body, which will compete with Boeing's forthcoming 787 and reflects the US manufacturer's strategy of seeking contracts to supply more integrated systems to aircraft makers.

"It simplifies the relationship for Airbus in that they've got one partner now instead of multiple suppliers," said Mike Madsen, vice president of Honeywell's airlines business. "We think it will continue to be a trend as airlines as well as airframe manufacturers look for ways to improve their operating efficiency."

In September, the diversified US manufacturer said it had received a contract from Airbus to supply auxiliary power, pressurization and climate-control systems on the aircraft. It estimated that contract would be worth USD$16.5 billion over the aircraft's life span.

Airbus is expected to launch the A350XWB in 2013 with the aircraft seen as likely to have a 20 to 25 year life-span. It already has received more than 300 orders for the aircraft.

Under the deal, Honeywell will supply systems to alert pilots of the approach of other aircraft as well as weather.

(Reuters)

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