Airbus' Board has given the authorisation to offer (ATO) the ultra-large A3XX, allowing the company to firm up the letters of interest it holds from eight airlines for 52 firm orders, including 17 freighters, and 20 options. Approval for the programme came in tandem with the agreement to form Airbus Integrated Company.

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The company now begins the urgent task of converting airline interest into firm orders at a time when rival Boeing is stepping up the pressure with promises to launch its own ultra-large aircraft in the shape of the 747X. Leasing giant International Lease Finance, Air France, Emirates Airlines, Singapore International Airlines, Virgin Atlantic, and three unnamed airlines, believed to include two cargo carriers - FedEx and Cargolux - have declared an interest in the European developed aircraft.

Bischoff says there is "very strong interest" in the cargo variant of the A3XX and admits Airbus is "under some pressure" from airlines to bring forward the in-service date of the cargo variant from 2007 - two years after the target for the initial 555-seat A3XX passenger version.

Airbus commercial director John Leahy says: "We're expecting to turn the letters of interest into memorandums of understanding before the end of the year." He reveals that the company is not looking for further potential launch airlines. "We don't want a situation with 10 or 12 launch customers. It is no secret there are heavy discounts for launch customers." He adds that the A3XX programme "will be the most profitable in our history. It will account for 10% of aircraft sales, but 25% of value".

The partners resolved the A3XX final assembly issue at the last minute by giving Hamburg responsibility for internal cabin finishing and delivery of aircraft to customers in Europe and the Middle East. Other customers' aircraft will be fitted out in Germany, but delivered from Toulouse, due to runway limitations at Hamburg to enable long range deliveries.

Part of the assembly deal involves the Airbus programme directorate for single-aisle aircraft being established in Hamburg. Subject to demand, a third narrow body final assembly line will also be established at the site.

Airbus director of large aircraft programmes Jürgen Thomas says the final decision on A3XX assembly will be in "two weeks". The most likely outcome will be transfer by ship of complete forward and aft fuselage sections (from Germany) and wings (from the UK) to a port 50km (30 miles) north of Bordeaux and then by road to Toulouse.

EADS estimates non-recurring development costs to total $10.7 billion and predicts the programme will break even with delivery of 250 aircraft over 10 years.

Source: Flight International