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The battle for the middle

01 August 2005

Airbus looks set to launch the A350. But can it compete with the 787. By Geoff Hearn.

Read more: Airbus Boeing airline Airlines ATA

Before the Paris Airshow it was hard to tell if Airbus was really serious about the A350. Many market participants – including airlines –thought that the European manufacturer was just discussing a new aircraft as way of slowing 787 orders. But after receiving 125 commitments from five customers, the official launch of the programme in September looks certain.

In fact, Qatar Airways' letter of intent for 60 A350s would almost be enough to launch the programme alone. GE Capital Aviation Services also committed to 10 A350s but the biggest surprises were Alafco's 12 aircraft announcement and Indian low-cost Kingfisher's five A350 commitment.

But, whilst airlines are pleased that they will have a choice – and be able to play manufacturers off against each other – Boeing has questioned whether what it calls "a derivative" can truly compete with a brand new aircraft.

Airbus claims the A350 is effectively a new aircraft, pointing out...


Quote

“At the current pricing it will become attractive again to issue Ex-Im-guaranteed bonds. This will help stabilize and drive pricing down from where it is now.”

Kostya Zolotusky, managing director, capital markets, Boeing Capital, says about the price of export credit.

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