Iberia to place big aircraft order - report

Airline Industry Information, Feb 21, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Spanish airline Iberia is reportedly preparing to place an order for between 50 and 70 aircraft with either European Airbus or its US rival Boeing.

Iberia is in the final stages of negotiations and the decision should be announced soon, said a company spokesperson. Iberia's board of directors meets on Thursdays but the spokesperson could not confirm if the matter of the aircraft order was on the agenda for the next meeting.

The carrier reportedly plans to replace 38 Douglas and McDonnell Douglas aircraft and 13 leased Boeing 757s, as well as a number of its older Airbus A320s.

Iberia is likely to choose between Boeing's latest models of 737 or Airbus's A320 family, reported Reuters. Catalogue prices for the smaller of the 737s start from USD44m but since airlines usually negotiate discounts, the exact value of the contract is unknown.

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