17th Oct 2006 07:01
British Airways PLC17 October 2006 COMPETITION FOR NEW LONGHAUL AIRCRAFT British Airways has launched a competition for new longhaul aircraft by issuingtender documents to aircraft and engine manufacturers. The competition, called a request for proposal (RFP), is the first step in alengthy process before the airline makes a decision on fleet growth andreplacement for the next decade. Airbus and Boeing, and engine manufacturers, Engine Alliance, General Electricand Rolls Royce plus other key component suppliers, have been invited to bid. British Airways' chief executive, Willie Walsh, said: "For the past four years,we have grown capacity by using our aircraft more efficiently. In order tocontinue to grow our longhaul business we now need additional longhaul aircraft.We remain committed to generating an economic return for our shareholders. "Launching the competition highlights the need for us to address our £2.1billion pension deficit. It is a major blocker to growth and investment in ourbusiness but I am confident we will resolve it. "With a combination of firm orders and options, we are planning for both growthand fleet replacement into the next decade. Environmental performance will beone of the key criteria in our choice ensuring greater fuel efficiency, reducednoise and emissions. The first aircraft to be replaced are the 20 Boeing 747sand 14 Boeing 767s, which will be around 25 years old," he said. Subject to the outcome of the RFP competition, orders are expected to be placedduring next year. The aircraft being considered for the airline's longhaul fleet are the AirbusA330, A350, A380 and Boeing 787, B777 and B747-8. ends October 17, 2006 104/LG/06 Notes to editors: British Airways has 284 aircraft in its fleet of which 114 are longhaulaircraft. Its longhaul fleet comprises 57 Boeing 747-400s, 43 B777s (three B777-200A, 24B777-200IGW and 16 B777-200ER) and 14 B767-300s. Projected entry into service dates for the Airbus A380 is 2007, A350 XWB isbetween 2012-2014 and B787 is 2008. There is no confirmed entry into servicedate for the passenger version of the B747-800. The current list prices for the aircraft being considered range from US$160million to US$ 316 million per aircraft. A new generation medium sized wide body aircraft such as the Airbus 350XWB orB787 is likely to have at least 30 per cent lower fuel burn and 30 per centlower NOx emissions per seat than a B767. An A380 or B747-8 is likely to have at least 17 per cent lower fuel burn perseat and 21 per cent lower NOx than a B747-400. The A380 and B747-8 are expected to be noticeably quieter on arrival than theB747-400. Certain information included in this statement is forward-looking and involvesrisks and uncertainties that could cause actual results to differ materiallyfrom those expressed or implied by the forward looking statements. Forward-looking statements include, without limitation, projections relating toresults of operations and financial conditions and the Company's plans andobjectives for future operations, including, without limitation, expected futurerevenues, financing plans and expected expenditures and divestments. Allforward-looking statements in this report are based upon information known tothe Company on the date of this report. The Company undertakes no obligation topublicly update or revise any forward-looking statement, whether as a result ofnew information, future events or otherwise. It is not reasonably possible to itemise all of the many factors and specificevents that could cause the Company's forward looking statements to be incorrector that could otherwise have a material adverse effect on the future operationsor results of an airline operating in the global economy. Information on somefactors which could result in material difference to the results is available inthe Company's SEC filings, including, without limitation the Company's Report onForm 20-F for the year ended March 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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