Chris Jasper/LONDON

Airbus is poised to make a new offer to Kenya Airways for three A330-200s in a move that could threaten the future of Boeing's planned Longer Range 767-400ER. Kenya is the only customer for the extended range version of the -400ER to date. A change of heart could kill the project and, with it, further development of the 767.

Sources close to the negotiations say senior Kenya Airways representatives visited Toulouse last month, and that Airbus is likely to make a new pitch "within a few weeks". The airline, however, says it remains pledged to the Longer Range -400ER, and is not actively seeking new offers.

One source suggests Boeing's current offer for three Longer Range -400ERs equates to a price of $85 million each (against a $120-132 million list price). Airbus is believed to have quoted $79 million for the A330-200 (list price $120-125 million) but may cut that to $75 million to unseat Boeing.

Boeing may respond with a new offer of its own. A 30 March deadline for a final decision still stands, Boeing demanding that Kenya makes an engine choice by that date or risk programme slippage.

A senior Kenya Airways source says it is leaning towards the Rolls-Royce Trent 600 rather than the General Electric Pratt & Whitney Engine Alliance GP7172: "Both are new engines, but while the Trent 600 is a derivative, the GP7172 is an all-new engine, and it might not be a good idea to launch both an airframe and an engine."

Kenya is already acquiring three Boeing 767-300ERs for delivery in May, June and July, to replace two of its four A310-300s and the single leased 767-300ERwhich replaced the A310 lost off Cote D'Ivoire last year. Further leased -300s could replace the remaining A310s from next year.

The new -300s will fill Kenya's 200-230 seat long-haul needs until the arrival of the Longer Range -400ER (or A330-200) from 2004, when European traffic is expected to grow to support a 250-seater. The -300s would be used to develop shorter trunk routes currently operated by two leased 737-200s and four owned 737-300s.

Source: Flight International