BA plans to buy new long-haul aircraft

LONDON - British Airways today said it planned to buy new long-haul aircraft and was looking at models made by both European planemaker Airbus and its US rival Boeing.

British Airways said it had launched a competition by issuing tender documents to Airbus and Boeing, as well as engine makers such as General Electric and Rolls-Royce.

"For the past four years, we have grown capacity by using our aircraft more efficiently. In order to continue to grow our long-haul business we now need additional long-haul aircraft," Chief Executive Willie Walsh said in a statement.

British Airways said it expected to place orders next year and that the aircraft it was considering were Airbus's A330, A350, A380 and Boeing's 787, B777 and B747-8.

Walsh told reporters on a conference call that it was too early to estimate the size or price of the orders, though he expected the airline to look at a mix of larger and mid-size planes from both Boeing and Airbus.

"We are very flexible at the moment. It is an excellent time to be talking to the manufacturers," Walsh told reporters, adding BA expected to negotiate significant discounts to manufacturers' list prices.

Walsh also reiterated he was confident of reaching an agreement with staff over BA's 2.1 billion pound pension deficit by November, an issue he said it was vital to resolve before the firm could start ordering new aircraft.

He expected a response from manufacturers to the tender towards the end of this year and first deliveries of new aircraft to BA in late 2008 or early 2009. He did not say how BA would fund the purchases.

BA had said previously it would not take delivery of long-haul aircraft until it moved into a new terminal at Heathrow Airport in 2008.

Walsh also said he expected Airbus to fully resolve problems with its superjumbo A380 which have resulted in a two-year delay in deliveries.

- REUTERS