BA abandons plans to buy super-jumbo

British Airways has shelved plans to be a launch customer for the 747- 600X, the super-jumbo jet that Boeing hopes will maintain its lead over the rival European aircraft manufacturer Airbus Industrie.

The move is a blow to the US planemaker which was counting on BA to back the $7bn (pounds 4bn) development programme by placing an early order for the proposed family of 450-550 seater jets. The launch of the 747-500X/600X range is four months behind schedule.

Even if the go-ahead is given in the next six months the jets, which will cost $200m each and carry 30 per cent more passengers than a conventional jumbo, will not be in service until 2001 at the earliest.

BA's withdrawal is the latest complication for the super-jumbo programme. It has also been affected by uncertainties over what engines will power it and plans by Airbus to launch its own 600-800 seat double-decker aircraft, the A3XX.

Ron Woodard, president of the Boeing Commercial Airplane Group, said: "The odds of launching this programme are a little better than 50:50 but it is not a slam dunk. We will be betting the company on this project and we have a tough business case to prove."

Although BA is still part of the airline working group advising Boeing on the project, it is not now thought to be actively negotiating an order. BA is instead concentrating on other priorities - the merger of transatlantic services with American Airlines and its goal of saving an extra pounds 1bn by the end of decade by turning itself into a "virtual airline".

So far only two long-haul carriers - Thai Airways and Malaysian Airlines - have said they intend to buy the new Boeing aircraft. Thai and Malaysian have indicated they would purchase 12 jets but Boeing needs more orders from a bigger number of airlines to launch the programme. John Roundhill, director of engineering on the programme, said Boeing was talking seriously to half-a-dozen airlines about the stretched 747. Other carriers who would be interested include Cathay Pacific, Qantas, Lufthansa, Air France and North West. But BA is the big prize.

"We know they have other things on their mind but it is very important to have BA as a launch customer," said Mr Roundhill.

Boeing and Airbus meanwhile continue their cat and mouse game over the development of their rival super-jumbo programmes.

Mr Woodard said Boeing estimated the market for 500-plus seater aircraft at only 470 over the next 20 years and claimed that the Airbus A3XX could cost $18bn-$20bn to develop. Airbus puts the market at 1,380 aircraft and says development costs would be $8bn-$12bn. Boeing announced a deal last week to collaborate on the engineering design and analysis of the 747- 500X/600X with its US rival, McDonnell Douglas. Not to be outdone, Airbus has brought Alenia of Italy on board to help develop the A3XX.

The Italian company will have a 10 per cent stake in the A3XX but will not, at present, take a direct shareholding in Airbus alongside the existing partners, British Aerospace, Aerospatiale of France, Daimler Benz of Germany and Casa of Spain.

Mr Woodard said there were "no plans or even dreams" to develop the collaboration with McDonnell Douglas into a merger of the their respective commercial aircraft businesses. He also said that the Alenia-Airbus tie-up would not change Boeing's relationship with the Italian company which is a long- standing supplier to Boeing which estimates that the total market for new aircraft will be 16,000 jets worth $1.1000bn over the next 20 years.

Of this, aircraft the size of the 747 and bigger will make up 18 per cent by value but only 7 per cent by number - equivalent to just over 1,100 aircraft. The biggest growth will be in single-aisle aircraft led by the burgeoning demand from the Chinese who alone are forecast to account for nearly a tenth of all deliveries between now and 2005.

Start your day with The Independent, sign up for daily news emails
Sport
England's women celebrate after their 3rd place play-off win against Germany
Women's World CupFara Williams converts penalty to secure victory and bronze medals
Arts and Entertainment
Ricardo by Edward Sutcliffe, 2014
artPortraits of LA cricketers from notorious suburb go on display
News
newsHillary Clinton comments on viral Humans of New York photo of gay teenager
Arts and Entertainment
The gang rape scene in the Royal Opera’s production of Gioachino Rossini’s Guillaume Tell has caused huge controversy
music
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate
Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'