Airbus Competes Against Boeing Over Plane Order
Airbus, Europe’s largest aircraft manufacturer is trying to land a plane order made by AMR Corp’s American Airlines. In order to defeat its competitor, Boeing, Airbus is trying to win over AMR by including in the deal $6 billion as preferential financing.
To make sure that it will succeed in its attempt to dethrone Boeing (the aircraft builder that lands most contracts offered by the American Airlines), Airbus has gathered a number of lenders and leasing firms to help with the deal. The total value of the deal offered by Airbus reaches $23 billion, but this total sum comes with an impressive discount.
For this money, Airbus is providing AMR Corp with 130 A320 planes and another 130 planes that represent the next more fuel efficient generation of A320neo planes (with a new engine that will become usable in 2015).
Until now, American Airlines has invested in a fleet which is formed only by Boeing aircrafts, but the decision about the next deal they are going to accepts is scheduled to be made by next Wednesday. Maybe it’s time for a little diversity.
On the other hand, Boeing is preparing to amaze American Airlines with an offer that includes 737-800s and 737-900 Extended Range planes. What remains unknown about Boeing’s terms is related to the specific financing terms and the total price. In the same time, Boeing it’s trying to come up with a product strategy that it’s suppose to include the 737 model, which has become their best-selling plane. The officials consider that this plane is a fierce competitor of the redesigned A230. The only problem is that, apparently, Boeing needs some more months in order to decide which are its intentions regarding the 737. Many believe that by including this plane in its official deal, Boeing would significantly reduce the chances of Airbus.
It’s interesting to watch a fight between two aircraft manufacturers, given the current economical situation. Let’s just hope that American Airlines will choose the best for the safety and comfort of their passengers.11