Airbus, the European plane-maker, yesterday trumped its American arch-rival, Boeing, by winning a $3,8-billion order for 65 aircraft from JetBlue, the profitable US low-cost airline.
Amid growing gloom about the prolonged global slump in the aviation industry, Airbus secured the biggest order so far this year, along with a further 50 options that could add $3bn to the contract.
The order, which is worth a potential $500-million to engine-maker Rolls-Royce, comes just two weeks after Boeing won what was then the biggest order this year – 45 737s for All Nippon Airways.
The dogfight between the two groups is becoming increasingly bitter as airlines, especially in the US, run up enormous losses. Some analysts believe the slump could last into 2007.
In the first quarter, Boeing, which expects to deliver 280 planes this year, won orders for 71 aircraft while Airbus, which still hopes to deliver 300 planes, secured 65 orders. Industry observers believe actual deliveries could be lower.
JetBlue, which posted a 34% jump in first-quarter profits yesterday, has an all-Airbus A320 fleet of 41 aircraft and will take the new planes between 2004 and 2011.
The New York-based carrier earned $17,6-million in the first three months of this year, in sharp contrast to the more than $2-billion losses endured by three of America’s biggest carriers. It said it is likely to turn the 50 options into firm orders, giving it a fleet of 202.
Airbus, which is also bidding for orders from AirTran, another US low-cost carrier, aims to win half that market, eating into Boeing’s 80%. Its US rival claims it is selling planes at huge, unprofitable discounts.
Rolls-Royce, also hit by the downturn, is to deliver engines to JetBlue’s fleet via its stake in the IAE consortium – which includes rival Pratt & Whitney.
BAE Systems, owner of 20% of Airbus, which employs 11 000 in Britain, last night lost the chance to take a 30% stake in South Africa’s main arms manufacturer, Denel, when Pretoria broke off talks.
– Guardian Unlimited Â