BA ‘close to $7billion Airbus deal’
City Index April 8, 2013 2:15 PM
<p>British Airways is close to completing a multi-billion dollar order with Airbus, which would come as a significant blow to Boeing.</p>
Airline manufacturer Boeing could face significant operating challenges in the near future, with British Airways (BA) believed to be close to completing a multi-billion order for A350 jets from rival Airbus.
Boeing has come under pressure in recent months after its 787 Dreamliner crafts were grounded in January amid serious safety concerns.
BA has traditionally been one of the firm's most loyal customers and so the order would come as a serious blow to the company, with reports suggesting it will move to offer an updated version of its popular 777 mini-jumbo model in an attempt to secure business.
News first emerged yesterday (April 7th) that BA is negotiating the terms of a $7 billion (£4.5 billion) order. According to reports, International Airlines Group – which owns both BA and Spanish airline Iberia – is close to securing the deal for 20 Airbus A350-1000 jets, which currently carry a list price of $332 million dollars.
The A350-1000 crafts are due to come into service in 2017 and will carry around 350 passengers.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.