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Wednesday, 20 June 2007, 12:12 GMT 13:12 UK

Aeroflot commitment lifts Airbus

Plane at the Paris air show Russian airline Aeroflot has committed itself to using the new Airbus A350 XWB plane in a major boost to the European aircraft maker.

Aeroflot will purchase 22 of the A350 planes for $3.2bn (£1.6bn), ending speculation it might opt exclusively for Boeing's Dreamliner 787 model.

Delays to the A350, not available until 2013, had put Airbus on the back foot.

But the Aeroflot deal is the latest in a series of orders, with Indian firm Kingfisher also set to buy 15 models.

Tit-for-tat deals

The airline has signed a memorandum of understanding with Airbus over the A350s, signalling its intent to buy them but stopping short of making a firm order, as part of a broader $7bn agreement.

Aeroflot's order comes three months after it signalled its intent to buy the A350s, an extra wide body long-haul aircraft capable of carrying up to 350 passengers.

"Kingfisher have reaffirmed their faith in the A350 XWB and we are delighted with this"
John Leahy, Airbus commercial director

Experts said Aeroflot, which has already ordered 22 Dreamliners, had wavered in its commitment to Airbus due to concerns about the redesign of the A350.

These problems have pushed back the plane's completion date to 2013.

In contrast, Boeing's rival Dreamliner model will become available next year although strong demand for it means that any future orders will not now be completed until 2013.

Airbus said the dual deals with Aeroflot and Kingfisher - on top of other orders announced at the set piece Paris air show - reflected confidence in the model.

"Kingfisher have reaffirmed their faith in the A350 XWB and we are delighted with this," said Airbus commercial director John Leahy.

Intense rivalry

The intense rivalry between the A350 and the Dreamliner has been the defining feature of this year's industry gathering in Paris.

Boeing far exceeds its rival in terms of total orders, with 600 in the bag, but Airbus has performed better at Paris than many experts had predicted.

The Aeroflot deal also includes an order for five A321 planes while, in addition, Kingfisher said it wanted to buy 35 other aircraft from Airbus.

In a series of tit-for-tat announcements, Boeing responded by unveiling details of a $2.7bn order for 16 planes from Air France KLM.



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Related to this story:
Boeing flies ahead with new order (19 Jun 07 |  Business )
Airbus order revives Boeing rivalry (18 Jun 07 |  Business )
Boeing seals Arab aerospace deal (18 Jun 07 |  Business )
Buoyant industry cheers as Paris kicks off (18 Jun 07 |  Business )

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