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Boeing, Airbus to Bid on $3.2-Billion Order

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From Associated Press

British Airways said Monday it needs up to 100 new jets and wants Seattle-based Boeing Co. and Europe’s Airbus Industrie consortium to bid for the order, which is worth up to $3.2 billion.

The manufacturers have until March 16 to complete initial tenders for the aircraft to replace aging planes at four regional European-based subsidiaries.

Boeing and Airbus Industrie each expressed immediate interest.

“I’m sure we would . . . pursue an opportunity of that magnitude very aggressively,” Boeing spokeswoman Susan Bradley said.

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In Paris, Airbus Industrie said in a statement, “Of course we will be taking part in the competition. . . . British Airways is currently flying 10 of our aircraft and we would be happy to provide more.”

British Airways Chief Executive Bob Ayling said the new aircraft would “improve punctuality, give more choice and an enhanced standard of in-flight service and more space to carry on luggage.”

Ayling said 30 planes were needed for the British Airways Regional operation, in a deal worth up to $960 million.

British Airways Regional operates 26 short-haul routes out of the twin hubs of Birmingham and Manchester airports in England to destinations in Britain and Europe, and operates one long-haul service to New York.

The company also plans to replace an additional 70 planes in the fleet operated by three other subsidiaries: Air Liberte in France, Deutsche in Germany and Britain-based EuroGatwick. That deal could be worth up to $2.2 billion, the company said.

Air Liberte flies out of Orly airport, Paris, and serves 50 European destinations. Munich-based Deutsche flies to seven German cities and Gatwick airport in southeast England. EuroGatwick operates 41 short-haul routes in Europe and Britain from Gatwick airport.

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The airline said it was looking at Airbus Industrie’s A319, A320 or A321, and at Boeing’s B737 series for the short-haul order.

British Airways has generally stayed loyal to the U.S. plane manufacturer. The majority of the airline’s planes are Boeing 737s, 747s, 757s, 767s and 777s. The airline also said it operates 10 Airbus A320s, seven McDonnell Douglas DC-10s and seven Concordes.

Ayling said the new aircraft would enable the company to meet noise regulations that go into effect in 2002, as well as save money by lowering costs.

“I don’t know the specifics of this intent, but I’m sure we would . . . pursue an opportunity of that magnitude very aggressively,” Boeing’s Bradley said.

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