Airbus A-318 Gets Formal Go-Ahead
Airbus Industrie on Monday officially launched its newest plane, the A-318, after it won orders worth $4 billion for the 107-seat jet, its latest challenge to Boeing Co.
The four-nation European consortium said it won commitments from Trans World Airlines Inc., International Lease Finance Corp., Air France and EgyptAir for 109 of the $37-million planes, designed for routes that require short, frequent trips.
Airbus expects the plane to enter service in the fourth quarter of 2002.
The A-318 will give Airbus, which has about 45% of the market for commercial aircraft, a full spectrum of models up to 400 seats, beyond which Boeing has a monopoly with its 747.
Boeing’s 108-seat 737-600, which entered commercial service a year ago, is a derivative of a plane based on 1960s technology, while the Airbus A-318 is based on 1980s technology, said Doug McVitie, managing director of Arran Aerospace, a forecasting and consulting company based in Scotland.
The A-318 will make it harder for Boeing, the world’s biggest maker of civil aircraft, to sustain its program to make the 717, the other plane in its 100-seat lineup, analysts said.
Boeing inherited the 717 with its purchase of McDonnell Douglas. Formerly the MD-95, the DC-9 successor has won only 115 orders after three years on the market, making it a potential candidate for shutting down as Boeing cuts unprofitable programs.
But Boeing Chief Executive Phil Condit, speaking at a news conference after the company’s annual meeting, said the 717 is a better plane than the Airbus 318. “We think the market for the 717 can be very strong,” he said.
Boeing has about 115 orders for the 717, but has failed to crack the regional airline market for which the plane is intended.
The 717’s future is crucial for workers at the former McDonnell Douglas plant in Long Beach. About 1,500 employees work on the plane.
In February, Boeing said it was reevaluating its various aircraft programs and considering selling or shutting those that are unprofitable.
