Airbus clinches super jumbo deals

Emirates chairman Sheik Ahmed bin Saeed Al Maktoum was the first to sign on the dotted line

Air France has signed a letter of intent to buy 10 super jumbo jets from Airbus, becoming the second airline to commit to buying the jet.

Earlier on Monday, the European commercial aviation company announced the first firm orders for its A3XX super jumbo jet project at the Farnborough Air Show.

The Middle Eastern airline, Emirates Airlines, is to buy five of the company's A3XX super jumbos. It also has the option to buy five more.

The two deals will secure thousands of jobs across Europe, including those at BAE Systems, the UK company that owns 20% of Airbus.

BAE plants in the UK will produce wings for the new aircraft.

The Emirates' deal is estimated to be worth at least $2.2bn.

Thousands of jobs depend on the successful launch

Emirates' chairman Sheikh Ahmed, who is also a member of Dubai's ruling family, flew to the UK this morning to complete the deal.

Emirates will receive its first super jumbo in February 2006.

Initial interest

So far, Airbus has received 52 initial expressions of interest in the new plane.

The company's chief executive Noel Forgeard said that he hoped to announce that 22 of these would become firm orders this week.

Air France became the second airline to commit to buying the jet, with news of its letter of intent.

No financial details of the Air France deal has been disclosed.

"The projected growth in air traffic we see, together with the totally new standard in terms of passengers comfort and economics that the A3XX will introduce in the very large capacity market will be extremely environmentally friendly, has convinced us," Air France president Jean-Cyril Spinetta said.

Singapore Airlines is also reportedly interested in ordering 10 of the super planes, with an option to buy a further six.

Rolls-Royce Trent 900 engines are expected to power the planes, in an order worth another $1.5bn.

Controversial plane

The Airbus super jumbo project has been controversial, with its launch postponed several times.

Super Jumbo Facts

Wingspan: 80m

Length: 67.4-78.9m

Passengers: 480-656

Minimum range (A3XX-100): 7,650 nautical miles (14,150 km)

Top range (A3XX-100R): 8,750 nm (16,200 km)

Engines: four Rolls-Royce or Pratt-Whitney-General Electric jet engines

On-board services: shops, sleeping areas, creche and exercise room over two decks

Rival Boeing claims that there is not a big enough market for the A3XX project, and estimates future demand at 400-500 aircraft, compared to Airbus's estimate of a market of 1,500.

But Airbus says it already has expressions of interest from Air France, Cathay Pacific, Virgin Atlantic, and the International Leasing Corporation, giving it more than the 50 firm orders it wants before launching the project.

Boeing, and the US government, are also concerned about the extent of government subsidy that will required to develop the super jumbo. One third of the development costs of $12bn (£8bn) are expected to be provided by commercial loans from European countries, with Britain pledged to contribute £500m.

The super jumbo, the world's largest commercial airliner, will challenge the highly profitable Boeing 747. The A3XX will have a range of 8,750 miles and on-board exercise and sleeping areas.

Boeing has recently announced it will develop a stretched version of the 747 to compete with the A3XX.

And it announced a $1bn order for six long-range 777-300X aircraft from ANA, Japan's second biggest carrier. The twin engine, wide-body 777 competes with the Airbus A340.

Bombardier deal

In a separate move, Bombardier Aerospace has signed what it calls the largest regional aircraft order in history - also worth approximately $2.2bn.

Bombardier Aerospace, has signed a deal with Delta Airlines for up to 500 regional jets - with firm orders for just over a hundred jets.

Bombardier owns the Shorts factory in Belfast, which will manufacture the central fuselage and casings for the jets' engines.

Extra staff are already being recruited in preparation for the work - and the number of employees will rise from 6,000 to 7,200 over the next year.