Emirates Airlines has finalised an order with Airbus Industrie for up to 12 A340-500s, after a last-ditch effort by Boeing to overturn the deal when an improved 777-200X offer failed to sway the Middle Eastern carrier.

The Emirates contract, which is expected to be announced at the Farnborough air show, covers firm orders for six ultra-long-haul A340-500s and options on a further six aircraft. The new Rolls-Royce Trent 500-powered aircraft, the first of which is due for delivery in 2002, will permit non-stop flights between Dubai and North America for the first time.

Boeing had been fighting a rearguard action against the A340-500 since November 1997, when Emirates first signed a letter of intent with the European consortium. The US company's final 777-200X proposal to the carrier included performance enhancements which are now under study but have yet to be approved.

Emirates' decision to order the A340-500 represents a blow to Boeing, when the airline already has nine 777-200s on order, or in service, and outstanding options on another five. Another major 777 operator, Singapore Airlines (SIA), took a similar decision in May to order 10 A340-500s.

International Lease Finance (ILFC) is also expected to announce its order for 10 A340-500/600s at the show. Total orders and options for the two versions, including those for ILFC and SIA, and the still unfinalised EVA Airways commitment for 12 -500s, now stands at 118 aircraft.

The new growth A340 derivatives now threatens to beat the unlaunched 777-200X/300Xs into airline service, with the first -600 scheduled for delivery to Virgin Atlantic in early 2002 and the -500 by mid-year.

With potential Boeing launch customers American Airlines and Delta Air Lines in no apparent hurry to order the new 777 versions, the company had been pinning its hopes on Emirates, along with Malaysia Airlines (MAS) and Egyptair.

MAS is negotiating with Boeing to order up to 10 -200Xs, including the conversion of four existing -200ER orders, but has been haggling on price and seeking guarantees on payload-range performance between Kuala Lumpur and Los Angeles. Egyptair, which has already ordered two A340-600s, is looking at ordering two -200X plus two options.

Source: Flight International