Iberia to Buy Up to 11 Airbus Jetliners

Spain’s Iberia Lineas Aereas said it will buy up to 11 Airbus Industrie jetliners worth about $1.4 billion as the state-controlled airline overhauls its fleet in preparation for its initial public offering next year. Europe’s fifth-largest airline will buy six four-engine A-340s, designed for long-haul flights, with options on another five. Iberia said the purchase is contingent on resolving a dispute with its pilots on ways to cut costs. The planes will help Iberia expand service to Latin America, Japan and South Africa. The order allowed Airbus to leapfrog rival Boeing Co. as the biggest brand in Iberia’s fleet. Iberia will take delivery of the new planes between next year and 2003.