Guy Norris/LOS ANGELES
British Airways has delayed a decision on whether to choose Airbus Industrie or Boeing to supply its new short haul fleet after a last-minute revision of the US manufacturer's bid appeared to stave off an imminent move towards the European consortium.
An evaluation team was due to present recommendations to the BA board on 3 July, having shaken hands on a deal for up to 190 aircraft with Airbus and engine supplier International Aero Engines, although officially the airline says no decision has been taken.
The issue has been thrown into doubt by a late flurry of activity from Boeing to rescue the situation after several newspapers reported in late June that the order had gone to Airbus.
The deal is crucial to both manufacturers. If BA does opt to order Airbuses for the first time, it would mark a major switch in allegiance and a huge blow to Boeing, which has enjoyed a virtual monopoly on orders from the carrier since the 1970s. A switch to Airbus by BA could have a wide-ranging, long term impact on the make-up of the group's entire short haul fleet, which now includes more than 140 737s and 757s.
Examples of the two competing types - a Swissair A319 and Germania 737-700 - were flown into BA's Heathrow base recently for inspection, after which the evaluation team was expected to submit its recommendation on 3 July.
Boeing is understood to have requested a delay to enable it to prepare a new bid, however. Although the manufacturer officially denies any new bid, it says it believes the decision could now be "kicked into August".
"We're not putting together new proposals," says Boeing. "We made the most competitive business proposal we could without jeopardising the interests of our shareholders."
Industry sources suggest that the three-way outline agreement shaken on between Airbus, BA and engine maker International Aero Engines covered 160 to 190 A320 family models, including options. Some of these aircraft were destined for subsidiary operations, such as Deutsche BA.
The airline's immediate request covers a requirement for 17 firm orders and 17 options, with deliveries beginning in the second half of 1999. It is understood, however, that the Airbus offer includes firm positions for between 60 and 65 A319/A320s and options on as many as 125 aircraft, with the A319 making up most of the firm orders.
Leasing companies are known to have become embroiled in the campaigns to assist with the early delivery requirements. GE Capital Aviation Services, for example, submitted a bid to BA for the lease of 737-600s and -700s.
BA's preference for the Airbus bid was being attributed to several factors, including pricing, faster availability, contract flexibility and the power-by-the-hour arrangement concluded with IAE, brokered through Rolls-Royce.
Source: Flight International
