Irish airline Aer Lingus PLC announced Wednesday that it is buying 12 Airbus jets, including the new A350 XWB, to expand its long-haul fleet. The deal is a welcome boost for struggling Airbus ahead of the Paris Air Show later this month.
Aer Lingus said in a statement the airline will take delivery of six new A330-300E and six new A350 XWB aircraft, valued at US$2.4 billion at catalog prices, with deliveries starting in 2009. The company said it negotiated substantial discounts off the list prices, as often happens with major jet purchases.
The airline will double its long-haul fleet to 14 Airbus aircraft by 2014, the statement said. Aer Lingus will also have the option to purchase a further six A350 XWB aircraft for delivery by 2018.
The Irish airline has said that it is determined to expand its services to the United States in the coming year. It flies to New York, Boston, Chicago and Los Angeles, but said in March the next targets were San Francisco and resuming service to Washington and Orlando, Florida.
Aer Lingus shut down its Washington services after the Sept. 11 attacks and canceled lucrative Orlando services in January 2006 because of a union dispute.
This deal announced Wednesday is subject to shareholder approval, which will be sought at a specially convened meeting.
The announcement came as Airbus parent company EADS is introducing a large-scale restructuring plan to labor representatives this week that foresees major job cuts to recoup losses after a bruising year.
http://www.forbes.com/feeds/ap/2007/06/ ... 92682.html
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