Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



British Airways Places Large New Airbus Order

European plane maker and EADS (NASDAQOTH: EADSF  ) subsidiary Airbus announced Monday that one of its biggest, and most expensive planes, has just secured a big place in the airplane lineup at British Airways (BA).

International Airline Group (IAG), the parent company of BA, has signed a memorandum of understanding that lays the groundwork for the purchase of 18 Airbus A350-1000 airliners, and options to buy 18 more. If all planes contemplated by this document are ultimately purchased, it could mean as much as $12 billion in new revenues for Airbus at list prices, which are almost never the price paid.

The deal could grow even bigger, though. IAG is the parent company of both BA and Spanish carrier Iberia. And, according to the Airbus press release, IAG is also interested in buying A350s for Iberia once Iberia is "in a position to grow profitably, having restructured and reduced its cost base."

BA ordered a dozen of Airbus' massive A380 airliners back in 2007. (The first of those are expected to be delivered this summer.) The decision to add A350s to the fleet, said IAG CEO Willie Walsh in this week's press release, "will not only bring greater flexibility to our network but also more choice for our customer."

Airbus's A350-1000 is the largest model of the company's A350 XWB (Xtra Wide-Body) family of jets, seating up to 350 passengers in three classes, and with a flight range of up to 8,400 nautical miles. Airbus says that compared to its nearest "established" competitor -- apparently referring to Boeing's new 787, with which the A350 will compete -- the A350 XWB planes will be 25% more fuel-efficient.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2379973, ~/Articles/ArticleHandler.aspx, 9/30/2016 3:06:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,343.22 199.77 1.10%
S&P 500 2,172.62 21.49 1.00%
NASD 5,322.34 53.18 1.01%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 12:39 PM
EADSF $60.71 Up +1.02 +1.71%