Guy Norris/LONG BEACH

Boeing is closing on potential major 717 deals with British Airways and US low fare airline Vanguard, following the conclusion of a key deal from Hawaiian Airlines for up to 20 aircraft.

"Three or four" orders for up to 50 aircraft are being finalised, says Boeing, the first of which could be announced as early as October. The US company is confident that the twinjet will clinch at least 1,000 of the 1,925 sales predicted in the 90/110-seat market over the next 20 years. Orders and options to date stand at 235, excluding the Hawaiian deal.

British Airways is the most significant near term potential customer and has a requirement for up to 40 aircraft, including 20 firm, with deliveries possibly beginning as early as mid-2000. The UK flag carrier has received a best and final offer from Boeing for the 717, but Airbus is pushing hard to ensure that it retains its relatively recent infiltration into BA's short haul fleet and has pitched a competitive offer based on the A318.

Kansas City-based Vanguard Airlines is seeking a replacement for its 11 Boeing 737-200s, and is understood to have a requirement for at least 10 717s. Meanwhile, Mexican carrier Aeromexico is also believed to have the 717 high on its shopping list.

Hawaiian has selected the 717 to replace its 15 McDonnell Douglas DC-9-50s on inter-island services, and has a letter of intent for 20 717-200s, including 13 firm, worth $430 million, and seven options. Deliveries will begin in February 2001, with the rest of the firm orders due by the end of the year.

The Hawaiian order emerged on the eve of the handover of the first 717-200 to launch customer AirTran Airways, which took place on 23 September. The Atlanta-based carrier is due to receive eight 717s by the end of the year, eight in 2000, 16 in 2001 and 18 in 2002.

Boeing has 14 aircraft in the production flow, and plans to deliver 33 next year, including the first to TWA in February. It plans to stabilise production at 60 a year in 2001, but says this could double, to 120, if market demand grows.

Source: Flight International