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LONDON (AFX) - British Airways PLC said it has taken the first step towards expanding its longhaul fleet by ordering four Boeing 777-200 ER aircraft for delivery during early 2009 and has taken options on four more for delivery the following year.
The airline said the list price for a new Boeing 777-200 ER is 201 mln usd per aircraft.
'These new aircraft will enable us to grow our longhaul business after we move to [Heathrow] Terminal 5,' said Robert Boyle, BA's commercial director.
'It was a close decision between the Boeing 777s and [EADS'] Airbus A330s. However, the ease of assimilating up to eight aircraft into our existing 777 fleet, rather than having a small number of A330s, swung the balance in Boeing's favour.'
Boyle said he expects a similarly competitive approach from both manufacturers as BA moves towards its major longhaul fleet renewal and expansion order later this year.
He said negotiations continue with General Electric Co and Rolls Royce Group PLC about which engines will be used on the new Boeing 777 aircraft.
BA's competition for additional and replacement longhaul aircraft to be delivered in the next decade is considering the Airbus A330, Airbus A350, Airbus A380, Boeing 787, Boeing 777 and Boeing 747-8.
The first aircraft to be replaced will be 20 Boeing 747s and 14 Boeing 767s, the oldest of which are currently 17 years old.
BA currently has 43 Boeing 777 aircraft in its fleet of which 27 have GE engines and 16 have Rolls Royce engines. The airline's other longhaul aircraft are 57 Boeing 747-400 and 14 Boeing 767-300.
In addition, the airline has turned options for four Airbus A320 shorthaul aircraft into firm orders. The aircraft will be delivered in 2008 to replace Airbus A320 family aircraft that are leaving its fleet.
BA shares closed Tuesday at 573-1/4 pence, valuing the business at 6.6 bln stg. newsdesk@afxnews.com jdd/vlb COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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