A total of nine customers, including Air France and Emirates, have expressed interest in acquiring more than 50 A3XXs. Airbus CEO Noel Forgeard said he expects 26 commitments to the A3XX at FI2000.

-by Rebecca Rayko

ILFC Signs for 5 A3XX, Places $7.5 Billion Order for 87 Airbus Jets

FARNBOROUGH, England - International Lease Finance Corp provided an additional vote of confidence in the superjumbo Airbus A3XX program at Farnborough today.

ILFC signed on for five A3XXs as part of an 87 aircraft order valued at $7.5 billion. Besides the A3XX, ILFC signed a letter of intent for 20 Airbus A330-200s and 62 Airbus A320 family jets. The LOI further provides for the possible acquisition by ILFC of up to 10 A330-500s, subject to the launch of this aircraft program.

ILFC chief executive Steven Udvar-Hazy endorsed the business case for the A3XX as a viable product for his customers, calling the A3XX the flagship of the 21st century.

"There is a big case for the A3XX," Hazy said today. "Our analysis of the inherent and residual values and earning capabilities of Airbus aircraft continues to be borne out by the market, and we are just as confident of securing airline placements for our A3XXs as for the rest of our Airbus fleet."

ILFC plans to take delivery of its first A3XX in 2006.

Hazy said ILFC has studied closely the markets now served by the reigning jumbojet, the Boeing 747, and found these markets growing at a rate of 5%-12% per year.

"By 2005, these markets will be saturated in terms of frequencies and slots, and the 747's ability to serve these markets will be diminished," says Hazy. "We need bigger aircraft to serve these markets."

Hazy also added that he has not ruled out buying the 747X, as well.

"By 2005, there will be room for the A3XX and potentially the 747X," said Hazy. "We're still gathering information on the 747X, but the A3XX has achieved the momentum. Boeing is looking at how to respond. But they have put versions of the 747X on the table, and we are evaluating them."

However, based on the latest figures from Boeing on its stretched derivative, Hazy says the operating costs for the A3XX are superior.

Today's ILFC 87-aicraft deal follows a commitment for 50 airbus jets announced in May. ILFC is Airbus' biggest single customer and has 480 Airbus jets on order.

- by Rebecca Rayko

GECAS Gives 777 Program Another Boost

FARNBOROUGH, England - GE Capital Aviation Services (GECAS), gave the 777 program a massive boost with an order for up to 32 aircraft including 20 of the new longer range X models.

The company's 777 commitments include 15 firm, 7 options and 10 purchase rights.

The 737NG also received yet another order boost with commitments for up 117 aircraft.

Total value of the firm orders (74) was put at $5.50 billion by GECAS president Henry Hubschman.

However Hubschman said that GECAS had not yet specified which variants of the 20, 777X airplanes would be ordered.

"We are yet to determine the mix," he said.

But GECAS has committed to the -ER variant for the balance of 12 airplanes.

- by Edward James

ILFC Endorses 777 With Commitment for 33

FARNBOROUGH, England - International Lease Finance Corp president and CEO Steven Udvar-Hazy sang the praises of the Boeing 777 today at a press conference announcing commitments for 33 of the longer range 777 derivatives.

ILFC plans to finalize within 45-60 days an order for eight new 777 longer range derivatives and 25 777-200ERs. The leasing giant will also take seven Boeing 737NGs. The entire order is valued at $6.8 billion for Boeing.

With the 777 order finalized, ILFC will become the largest owner of the 777 with 67 aircraft on order. Hazy called the aircraft the most technically advanced twinjet, despite his company having a modest number of the rival aircraft Airbus A340 on order as well.

"The 777 cabin comfort is superior," Hazy said. "The A340 cabin is really the same as the A300."

The 777 burns less fuel, is faster and climbs stronger than the A340, he said.

"The Airbus airplane does have the advantage of commonality with the single-aisle Airbus family, but the 777 is an all-new airplane," Hazy said.

The ILFC chief was also bullish on the Boeing 747 Stretch.

"One would think the natural selection of 747 operators would be to go with the 747X over the A3XX," he said.

CIT Group Commits to 50 Airbus Jets

FARNBOROUGH, England - Two years after becoming an Airbus customer, CIT Aerospace executed a firm letter of intent for the purchase of 35 Airbus single-aisle jets, plus 15 Airbus A330s.

The A330 orders are conditioned upon the program launch of the -500 series, and is valued at $3.5 billion. Airbus senior vice president John Leahy said the A330-500 program is in the same situation as the A3XX.

"We're going to the market to gauge interest in the aircraft. This is a contract dependent on the launch of the program, and CIT has the rights and an agreed-upon price for the aircraft," said Leahy.

CIT Group hopes to have the A330s in the portfolio in 3-5 years.

Emirates, ANA Order 777

FARNBOROUGH, England - All Nippon Airways has added its name to the growing list of customers for the longer range models of the Boeing 777, with an order for six of the -300 model.

In a champagne clinking ceremony, Boeing and GE executives could hardy contain their pleasure at a symbolic signing for the new models when EVA Air, JAL, GECAS and IFLC welcomed ANA to the launch customer group.

"This airplane is a game-changer for the industry," said James McNerney, president and CEO at GE Engines.

However, Boeing is yet to sign customers such as Singapore Airlines, Malaysia Airlines, Qantas, Air France and Cathay Pacific - all who have been touted as launch customers.

Emirates added to the 777's successful week at Farnborough with an order for six 777-300s but is yet to commit to the longer ranged models.

The order is valued at $1 billion and is expected to be finalized in three months.

- by Edward James

Embraer Launches Legacy Business Jet

FARNBOROUGH, England - Brazilian regional manufacturer Embraer has entered the corporate jet market. The Legacy was the centerpiece of a lavish event held at London's Natural History Museum on the eve of the show opening.

Legacy is the corporate variant of the 37-seat ERJ-135 regional jet that will compete in the expanding super-midsize market. Embraer vice chairman Sam Hill said the Legacy will redefine this category.

"With a range of 3,200nm and a cost of around $19 million, the Legacy is comparable to the Continental, Horizon, and Galaxy, but with the 1,410 cu ft of space, it is expected to have a cabin volume of at least 60% larger."

The 3,200nm range is with eight passengers on board and was achieved by extending the fairing and redesigning the cargo hold of the ERJ-135 to allow for the additional 7,000 lbs of fuel.

Other modifications include the addition of winglets and changes to improve the aircraft's short-field performance.

Swift Aviation and the Hellenic Air Force were introduces as the launch customers for the Legacy. Phoenix-based Swift Aviation has contracted for three Legacy jets for charter use.

Embraer is also developing a 20-seat corporate shuttle version of the legacy. Based on the mechanically unmodified, 1,700nm range ERJ-135, the shuttle will cost around $15.5 million complete.

First flight of the Legacy is scheduled for next February, with FAA and JAA certification planned for 3Q 2001.

- by Rebecca Rayko

Boeing Considers Even More Range Following 767-400ER Certification

FARNBOROUGH, England - Competition between long-standing US manufacturer Boeing and Europe's recently consolidated airframer Airbus is continuing on all fronts. Boeing is attempting desperately to meet airline demand by squeezing ever-more seats - 522 at the last count - into variants of its now-aging Boeing 747 in studies called -400X, 747X and X Stretch (but, so far, no GTXLR Turbo with fuel-injection, quad carbs and strait-thru muffler). Meanwhile, Airbus has taken the first bookings for its proposed 555-seat A3XX very-large airliner. At the other end of the spectrum, the European manufacturer is moving ahead with development of the 108-seat A318, while the US company examines the realism of a smaller variant of the 104-passenger 717-200 that could enhance the former McDonnell Douglas MD-95's marketability.

In between, both teams are looking at every opportunity to satisfy customer requirements for long-range twin-aisle aircraft in mid- (or intermediate-) size. Airbus is looking closely at an A330-200-based long-hauler that could replace A310s and A300-600s with a fly-by-wire derivative sporting the new interior being developed for the A340-500/600. Boeing, meanwhile, is examining a potential 767-400LR (currently dubbed ERX) as a big brother for the 767-300ER, as well as a possible longer-legged 767-300LR (ERX) and a shorter-bodied -100 variant of the larger 777.

As currently envisioned, the 767-400ERX would regain the 7,000-mile (6,150 nm/11,390km) range of the 767-300ER, from which about 500 nm was lost in development of the larger 767-400ER that is soon to enter service with Delta Air Lines following certification in the US and Europe this month. If launched, the ERX is slated for service with Africa's Kenya Airways, which would like to take three aircraft from May 2004.

This will be a classic application of the well-proven Boeing technique in airliner family evolution. From a standard base, more strength is introduced to permit higher operating weights that typically are used to accommodate more fuel for greater range. Then, the heavier structure is further developed to translate the new weight into a longer body with higher capacity to operate over approximately the earlier range. Further yet, this new variant is beefed-up again to allow the higher passenger/cargo loads to be carried on the longer-haul routes.

There reportedly has been increasing airline interest in a longer-range variant of the 767-400ER that Boeing says could operate as a replacement for McDonnell Douglas DC-10-30ERs and in markets needing higher capacity than is offered by the 767-300ER. Current studies define a three-class, 245-seat (20 + 50 + 175) layout, 465,000lb maximum take-off weight airplane operating from shorter, 9,650ft, runways. The ERX would sport stronger wings, landing gear and fuselage, be powered by higher-thrust engines, and would carry more fuel (housed in the tailplane). The 777-style cabin interior and upgraded flightdeck adopted for the 767-400ER would be retained, as would 757/767 pilot common-type rating.

Boeing also says Rolls-Royce power will be available for 767-400ERX customers in the form of the Trent 600. This variant of the long-established three-shaft RB211 will offer 68,000-72,000lb thrust and will incorporate a swept-blade fan of 102-inch diameter - a new size between the standard 97.5in and 102in dimensions of other Trents. While the current 767-400ER is powered by the 63,300lb-thrust Pratt & Whitney PW4062, that supplier will offer the 72,000lb-thrust General Electric/P&W Engine Alliance GP7172 as an alternative to the R-R unit. (These same powerplants also will be offered on Boeing 747X development airplanes.)

Taking the Airbus A330-200 as a base for comparison, Boeing claims the 767-400ERX would offer 3% lower seat-mile and trip costs and 8.4% lower fuel requirements. It would be 36,000lb (16,300kg) lighter, but would provide 9.4% more unitized cargo volume. When operated on typical established routes flown by 767-300ERs, the projected new variant would provide 12%-15% more capacity, says Boeing, studying a high-density -400ER for use by inclusive-tour or charter operators. This could accommodate some 410 passengers, but would necessitate introduction of a larger Type A passenger door at the Number 3 position to meet emergency evacuation standards.

While the -400ERX would share the -300ER's range, Boeing is looking at the potential to introduce higher-powered engines to drive a yet longer-legged -300ERX. With a possible 7,650-mile (6,650 nm/12,300km) range, such a model could fly London-Singapore or New York-Tokyo.

As Boeing continues to develop the entire 767 family by introducing changes to all models, it is considering whether to offer the 767-400ER/ERX's 777-style flat-panel instrument displays as upgrades for the earlier -200ER and -300ER (for both of which the new cabin interior is now available).

- by Ian Goold

Continental Express Orders ERJ-145XR for $3 Billion

FARNBOROUGH, England - Continental Express awarded Embraer a contract for 175 aircraft, including 75 firm orders and 100 options. The contract's value is $3 billion, of which $1.2 billion covers firm orders.

The aircraft order launches the new ERJ-145XRs (XR for Extra Long Range), a special version tailored to the airline's requirements. With the new contract in place, Continental's order book for ERJs totals 375 (firm orders and options), out of which 68 50-seat ERJ-145s and 12 37-seat ERJ-135s have been delivered. Some of the previously ordered 145s might come into the XR version.

The 145XR is to fly in first quarter of the next year; deliveries should start in August 2002, according to Mauricio Botelho, Embraer's CEO and president. Should the options turn into firm orders Continental Express will take delivery of the last aircraft ordered today in late 2004.

The ERJ-145XR differs from the basic airframe in having winglets, extra tanks and improved engines. Supplementary tanks are covered with fairings for smoother aerodynamic flow and fixed to the fuselage aft of the wing's centerplane section.

Extra fuel capacity allows for 2000 nm range with 50 passengers aboard, which is 500 nm more than for the basic ERJ-145. Winglets are added to reduce fuel burn. To cope with an increase in the maximum weight - the latter rose from 22 to 24 tons - some structural elements are beefed up. The cruise speed of Mach 0.78 and max payload of 5560 kg remain unchanged.

The XR features better field performance in hot-and-high conditions due to improved engines the AE3007A1E turbofans. Rolls-Royce says that it gets $1.02 billion for supplying engines for the newly ordered Continental airplanes.

According to Betelho, the extra fuel capacity allows regional airlines to explore new markets with the ERJ-145XR. Improvements made on the XR increased the plane's sticker price by $1.5 million.

- by Vovick Karnozov

GECAS Places $2 Billion Airbus Order

FARNBOROUGH, England - The world's largest leasing company will add the smallest Airbus airliner to its aircraft portfolio. GE Capital Aviation Services (GECAS) placed a firm order today for 42 single-aisle Airbus jets, including 30 firm orders for the Airbus A318 and 12 firm orders for A320s.

The order is valued at just more than $2 billion.

This marks the first order for the A318 by the US-based lessor, which will begin taking deliveries during the first quarter of 2004.

The deal also marks the third time GECAS has ordered the A320, although 10 of the 12 firm orders were previously optioned aircraft. Deliveries will begin in mid-2003.

GECAS, which took delivery of its first Airbus jet just three years ago, now has more than 200 Airbus jets on order, said GECAS president Henry Hubschman.

Hubschman is also considering Airbus products on the other end of the capacity spectrum, including the A330-500 and the A3XX.

"We're in discussions for the A3XX, but not ready to make an announcement at this point. We're still evaluating the product," Hubschman said.

The A318s will be powered by the CFM56-5B engine, making GECAS the first leasing company to order CFM-powered models. (ILFC has ordered Pratt-powered A318s.) GE's involvement in the CFM program makes the engine selection a natural one.

Hubschman believes that the CFM-powered A318s will be especially attractive to airlines already operating A320 family aircraft, which are powered by the CFM engine, and thereby help facilitate placing the aircraft.

"We're already in discussions with a number of these airlines," he said.

- by Rebecca Rayko

AgustaWestland Join for Brighter Future

FARNBOROUGH, England - FI2000 yielded another giant in aviation manufacturing with the marriage announcement of Agusta and Westland.

This comes after 18 years of successful collaboration. Both companies have a joint pavilion at the show, despite entering FI2000 as separate entities.

Now called AgustaWestland, the Italian and German companies finally agreed on the details concerning the marriage of their helicopter businesses. Combined, the venture in 1999 had revenues of $2.1 billion and is now the second player on the market just after Boeing. It is heads over Eurocopter, Bell and Sikorsky. The current order book exceeds $8 billion.

The new company is expected to be fully operational this summer. Agusta offers a wide range of products in the light sector, and Westland is extremely healthy financially.

GKN Westland Helicopter Ltd reports annual sales of $4.6 billion with a backlog worth approximately $6.2 billion. In 1999, Agusta had sales of $800 million and a backlog at $3.4 billion.

The product range covers all types of helicopters, from the light A119 Koala to the heavier EH 101. Surprisingly there is little internal conflict between any products. All of them have strong support, and just a day before the merger was announced, Agusta completed a deal with Denel, which will proceed with final assembly of 30 A109s dedicated for the South African Air Force. The company will also be engaged in production and sales of Koalas.

The creation of AgustaWestland means there are now two large helicopter manufacturing structures residing in Europe. Both are eager to put their hands on the European domestic market.

- by Ryszard Jaxa-Malachowski

Seven European Countries Commit to 225 Airbus A400Ms

FARNBOROUGH, England - Today it was the military arm of Airbus that took the spotlight at Farnborough.

Seven European nations announced plans to buy 225 Airbus Military A400Ms - the airlifter currently being designed by the European industrial group led by Airbus.

The defense ministers of Britain, Belgium, France, Germany, Italy, Spain and Turkey held a press conference to mark the historic purchase. Although united in their intentions, the ministers said they could not come to terms with AMC on pricing for the A400Ms as of yet.

The countries do expect to come to a contractual agreement with AMC by the end of this year.

AMC is also facing some trouble on the engine side of the program. AMC says it has two acceptable engine proposals on the table from which to choose, but was informed in February that the two competing companies prefer to submit a joint proposal.

The two engine proposals under consideration are the Rolls-Royce BR700-TP and the M138 from Turboprop International.

"AMC will only consider the joint proposal if it is better than the two currently on the table," said David Jennings, director of marketing for Airbus Military.

Further, AMC believes the commitments received today from the seven European defense ministers will only increase pressure on the engine manufacturers to come to terms.

The engine selection is due this fall.

Calling it the "C-130 for the 21st century," AMC spent most of the press briefing on the A400M comparing the aircraft to the Lockheed market dominator.

The A400M provides twice the volume of the C-130J and twice the payload for almost identical life cycle costs, said AMC.

As for the "other end of the airlifter spectrum" (meaning the larger Boeing C-17 Globemaster III) AMC says its A400M will provide two-thirds the C-17's volume and half the mean payload, but at less than half the price of the C-17 and for one-third of the C-17's life cycle costs.

More than 400 military transports equip European air forces today, the bulk of them C-130s and the Franco-German C-160 Transalls. Most are around 30 years old and in need of replacement. The A400M proposal was submitted to the seven nations in January 1999.

The A400M has a maximum payload of 37 tons and a cargo box volume of 356 cubic meters. The aircraft will have an operating range of around 2,500 nm.

- by Rebecca Rayko

Boeing Wins $291 Million in Orders

FARNBOROUGH, England - Boeing was able to squeeze in a respectably sized order toward the close of the show. Today the company confirmed orders by Turkmenistan Airlines and Korean Air worth a total of $291 million.

Turkmenistan Airlines has signed for three Boeing 717-200 jetliners, and Korean Air ordered one new Boeing 747-400 freighter.

The first Turkmenistan 717 will deliver in July 2001. Korean Air is scheduled to take delivery of its new airplane in November 2001.

"The 717 is an excellent airplane as we continue with our plan to replace Russian-built aircraft with Boeing airplanes," said Ilyas Berdiev, chief executive of Turkmenistan Airlines.

Turkmenistan Airlines will configure its new airplanes to carry 110 passengers in a mixed-class configuration - 55 in business class and 55 passengers in economy.

The order is part of Turkmenistan Airlines' plan to modernize its fleet with Boeing jetliners.

The Korean Air order has already been included in cumulative order totals published by Boeing, attributed to an unidentified customer.

Korean Air operates a fleet of four MD-11 freighters, seven 747-200 freighters, and five 747-400 freighters, two of which began operations in Los Angeles and New York in June. KAL operates a fleet of 26 747Fs.

- by Rebecca Rayko