Andrew Doyle/MUNICH
Airbus Industrie has drawn up a confidential business plan aimed at frustrating Boeing's efforts to remarket 17 A340-300s it is to acquire from Singapore Airlines (SIA)as part of a recent 777 deal.
The consortium declines to comment on the plan, but a source familiar with its contents says: "We are going to do everything we can to make this extremely expensive for Boeing. We believe it hasn't fully accounted for the full costs of remarketing widebody aircraft of its major competitor." The source adds: "We are not going to support these aircraft to help Boeing."
Boeing has given SIA reserve pricing on the 17 A340s, which the airline intends to withdraw between 2001 and 2004, and will have to buy the aircraft if the carrier fails to dispose of them first (Flight International, 30 June-6 July). The US company's move has caused consternation within Airbus, which believes the deal could set a dangerous precedent.
At the consortium's recent commercial symposium, senior vice-president, commercial, John Leahy described Boeing's move as "economically questionable".
He outlined the confidential business plan, and is quoted by Airbus internal newspaper Forum as saying it will result in "a lot of people in Seattle realising that it is a crazy idea to think that this deal is nothing out of the ordinary".
Leahy points out that the Airbus support, performance guarantee and warranty clauses on the A340s apply only to SIA and would be invalidated once Boeing assumed ownership of the aircraft.
If forced to buy the A340s, Boeing plans to place them with operators of the type, and Airbus intends to respond with competitive offers of new aircraft.
Boeing declines to comment on the Airbus plan, but sources close to the Singapore deal believe the proposed action is fundamentally flawed, particularly since they say that the effect of any punitive action is likely to be felt by the airlines themselves.
A Boeing source says: "It's logical that SIA, and Boeing, should try and remarket these aircraft with existing A340 customers. Many of these, particularly in Asia, will continue to be future Airbus customers and will need more Airbus aircraft. It is therefore in the interest of Airbus to keep these customers happy. If warranties and support become difficult, surely Airbus is shooting itself in the foot?"
Boeing points out that the first aircraft will not come into its possession until the airline has first attempted to dispose of the asset, and when deliveries begin of the first 777s ordered as part of the deal.
Source: Flight International
