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Airbus Gets Order for Up to 100 Jetliners : European Firm’s Deal With Northwest Airlines Could Hit $3.2 Billion

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Associated Press

Northwest Airlines will buy up to 100 Airbus Industrie jetliners in a deal that could be worth $3.2 billion, the airline’s parent company and the European aircraft maker announced Wednesday.

It was the biggest order ever received by Airbus, the consortium that has emerged as a major competitor to industry giants Boeing and McDonnell Douglas, which dominate the commercial aircraft market. Other U.S. customers for Airbus planes include Pan Am, Eastern and Continental.

The agreement with Northwest calls for delivery of up to 100 A320-200s between 1990 and 1995. Northwest must make a firm commitment on 10 A320s for delivery in 1990 and 1991, the Minneapolis-based carrier said in a statement.

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The remaining 90 aircraft are available to Northwest in a series of six blocks of 15 aircraft each.

The agreement allows Northwest to confirm or cancel any or all of the aircraft offered in each block after the initial 10 aircraft, the company said.

“The flexibility in this agreement will allow Northwest to add additional capacity or to replace older 727s and DC-9s in our fleet in a manner that suits market needs and economic conditions as well as the financing capability of the airline,” said Steven G. Rothmeier, chief executive of NWA Inc., Northwest’s parent.

The total value of the contract, including spares and support, could total $3.2 billion. Northwest has not yet selected the manufacturer that will supply engines for the aircraft.

“We’re of course disappointed, but Northwest has been one of our best customers,” Boeing spokesman Jim Boynton said of the Airbus sale. Officials of McDonnell Douglas did not return telephone calls seeking comment.

Boeing had offered to sell Northwest some 737s, the company’s smallest airplanes, which seat between 120 and 150-plus people, Boynton said. He did not disclose details of the Boeing offer.

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Airbus Industrie is a four-nation consortium of Europe’s leading aerospace companies in France, West Germany, Britain and Spain. With combined assets of $11.9 billion, it is the largest aircraft manufacturer in the world.

The deal with Northwest is by far Airbus’ biggest, not only to a U.S. airline but to any customer. Previously, Airbus sold 28 aircraft to Pan Am, 34 to Eastern and 6 to Continental.

An Airbus spokesman in New York, who declined to be quoted by name, said about 25% of the A320 consists of American parts. Final assembly is in France, he said.

“The industry is generally becoming much more international,” he said. “It’s not as if it were strictly European aircraft.”

The Airbus A320, which will seat 150 passengers, is quieter and more fuel-efficient than some current Northwest aircraft, the companies said.

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