Karen Walker
Airbus Industrie chalked up yet another coup yesterday when it announced two multi-billion-dollar deals and secured a new customer, United Parcel Service (UPS), which has selected the A300-600 freighter for its widebody fleet.
Wednesday's UPS order, worth $4.8 billion, combined with a $2 billion order from leasing company GE Capital Services, takes the total value of orders announced by Airbus at this show to almost $12 billion. That equals the entire amount generated by the whole aerospace industry at Farnborough '96.
UPS vice-president of airline operations Bob Lekites joined Airbus chief executive officer Noel Forgeard to reveal that the express package company has placed a firm order for 30 A300Fs with an additional 30 options. Deliveries will begin in 2000. A decision between General Electric or Pratt & Whitney as engine supplier is expected by the end of the year.
Lekite says the selection process by UPS was "exhaustive" and included an evaluation of the used aircraft market as well as new offerings from both Airbus and Boeing.
"This deal offered the best combination of performance and value over the long term," says Lekite. "Our analysis was based on results over 30 years. Long term vision is what sets UPS apart."
The GECAS deal, meanwhile, is for 30 firm and 10 option A320s, boosting the company's Airbus portfolio to 147 aircraft.
The new A320s will be delivered between 2003 and 2006 and will be powered by the CFM International CFM56.
John Leahy, senior vice-president, commercial, at Airbus says some 25% of the manufacturer's sales are now to leasing companies and he expects it to grow to 30%. "There is no doubt that having a good relationship with leasing companies is strategically important to us," he says.
Airbus sales have gone through the 3,000 mark with these latest orders and anchor the European company's market share at around 50%. Earlier this week, Airbus revealed orders worth $2.4 billion from Emirates and $2.7 billion from International Lease Finance. "This has been the year where we have good news that just keeps coming," says Airbus .
Source: Flight Daily News
