British Midland Airways (BM) expects to sign a $1 billion firm order with Airbus Industrie for A320s and A321s in May, having concluded an initial memorandum of understanding in early April for up to 20 aircraft.
The airline, which selected the Airbus single-aisle family over Boeing's 737-800 and 757, will take delivery of its first new aircraft in 1998, initiating a five-year fleet-replacement programme. BM intends to take eight 196-seat A321s, plus 12 160-seat A320s, with the first three A321s due for delivery in the second quarter of 1998. The airline has the option to upgrade the A320 orders to the larger A321 should traffic growth require it.
No engine selection has been made, and BM says that it has not finalised the acquisition methods, but confirms plans for a mix of direct purchase and financial leases (Flight International, 5-11 February).
The airline's jet-powered airliner fleet consists of 25 Boeing 737-300/400/500s and nine Fokker 70/100s, with the majority of its 737s leased from operating lessors or its shareholder, SAS. BM says that Airbus "-clinched the deal as it offered the option to upgrade the A320 orders to A321s with no penalty". It adds that the capacity of these aircraft most suited its requirements. Although the Airbuses are being acquired to replace the 737s, it intends to "-keep some of the Boeings".
Airbus is expected to clinch a major $2 billion order from China for up to 50 aircraft in May, during a visit to Beijing by French president Jacques Chirac. It is expected that the majority of the order will be for the A320 family models.
Source: Flight International
