-BA to purchase 12 100-seat A318 aircraft from Airbus - Brief Article

Airline Industry Information, Oct 13, 1999

British Airways (BA) has confirmed its intention to purchase 12 100-seat A318 model aircraft from European aircraft manufacturer, Airbus Industrie. No comment on how much the deal is worth has been made, however a spokesperson for BA did say that the cost was less than the list price of GBP285m. The BA spokesperson also told Bridge News that the decision to purchase Airbus aircraft was not a snub to Boeing but that Airbus offered the best deal and the purchase of Airbus carriers is in line with the airline's order for a number of Airbus A319's and A320's in 1998. The 12 aircraft are scheduled for delivery commencing in January 2003. Meanwhile, following BA's decision to choose the A318 over Boeing's 100- seat 717 aircraft, analysts have suggested that 'once the A320 family had got into an airline's fleet, Boeing was probably unable to combat it with the 717,'. The attractiveness of the Airbus narrow-body range of aircraft is apparently related to the similarities within the Airbus family, which means that airlines can use the same maintenance equipment and aircrew across the range. A factor that BA indicated played a part in its decision since it already has several other Airbus aircraft on order and in its fleet. The A318 was not initially expected to do well because it is heavier and more expensive to manufacture compared to Boeing's 717 aircraft, however the 717 lacks commonality with other Boeing aircraft which makes it less desirable. An analyst with US bank Commerzbank has stated that the BA order creates doubt about the ability of the 717 to win orders from other prestige carriers.

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