Airbus Industrie Is Expected to Begin Production of New 100-Seater A-318 Jet

Europe’s Airbus Industrie is poised to announce in the next few days the production launch of the 100-seater A-318, its latest jet to take on U.S. rival Boeing Co., a spokesman said Tuesday.

“The launch could be made in the next few days,” the spokesman said. “The commitments we have received come to just over 100 planes.”

The European airline consortium needed about 100 orders from a number of companies before its board would approve the industrial launch of the jet, which will be the smallest in its range and sell for $36 million at catalog prices.

The A-318, a smaller version of the A-320 narrow-body jet, would compete with Boeing’s 737 and 717. The 717, inherited from the takeover of McDonnell Douglas, is seen as vulnerable as it does not share common elements in the Boeing family.

A Boeing spokesman said the 717-200, seating 106 passengers, sells for between $31.5 million and $35.5 million, while the 737-600 goes for between $36 million and $44 million. Boeing has sold a total 115 of the 717 since it was launched as the MD95, and 133 of the 737-600.

Airbus is in advanced discussions in selling the A-318 to Air France and is also talking to Germany’s Lufthansa, Egyptair and Air China, the spokesman said. It already has orders from U.S. leasing group ILFC and TWA.

In a separate development Tuesday, Airbus said it won an order from aircraft lessor CIT Group for 30 planes worth an estimated $1.8 billion, the European maker’s first from the New Jersey-based financial services company, which until now has bought mainly Boeing aircraft.

Airbus, meanwhile, said no decision has been made on where to build the A-318. Its French partner Aerospatiale builds the A-320 at Toulouse, while Germany’s DaimlerChrysler Aerospace assembles the derivative 319 and 321 models at Hamburg.