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 AIR FRANCE-KLM DECISION ON JET ORDER IN SUMMER

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PostSubject: AIR FRANCE-KLM DECISION ON JET ORDER IN SUMMER   Mon Jul 11, 2011 8:06 am

July 8, 2011
Air France-KLM hopes to announce the results of a contest between Airbus and Boeing to supply the European airline with wide-bodied jets during the summer, its chief executive said on Thursday.

The airline group is looking for 100 lightweight, fuel-saving aircraft in the mid-sized 250-300 seat range and is comparing the Boeing 787 Dreamliner with the future Airbus A350.

Chief executive Pierre-Henri Gourgeon told shareholders both plane makers had made competitive offers, sidestepping a recent row over pressure from French parliamentarians to support Airbus. But he indicated Air France-KLM wanted them to lower the price.

"Both are offering very competitive products in terms of technical performance and economic performance and our job is to improve the proposals, especially at the financial level," he told the airline group's annual shareholder meeting.

The order would notionally be worth some USD$25 billion at list prices but airlines typically negotiate discounts.

Officials at Air France-KLM have said the order is likely to be split between Airbus and Boeing.

(Reuters)

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