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Tue, Mar 28, 2006

Pressured By Airlines, Boeing Goes Ahead With Expanded 787

Will Begin Flights In Late 2012... For Emirates?

When airlines talk, Boeing listens. That was the word Monday from Mike Bair, general director of the 787 program, who said Boeing has decided to proceed with plans for an expanded version of the Dreamliner despite the company's fears such a plane would compete with its own popular 777-200ER.

The decision was made, Bair said, after Emirates Airlines -- long an advocate for the larger version of the airliner -- was joined by other airlines who want the option of a bigger 787.

"As time has marched on and we talked to other carriers it's become pretty obvious to us that the interest is more widespread than just Emirates and that's really what has caused us to look at this opportunity more seriously," Bair said in a conference call, according to Reuters.

The larger 787-10 will seat close to 300 people, with range comparable to the smaller 250-seat 787-9 -- between 8,600 to 8,800 miles.

The move to produce a larger Dreamliner comes as Boeing looks to hold onto as many of Emirates' orders as it can, in the face of diplomatic pressures and increasing competition from archrival Airbus, who is already courting Emirates and several other airlines with a larger version of it's A350 Boeing-beater.

Boeing is currently duking it out with Airbus over a 50-plane order from Emirates, to be made up of midsize widebodies. The Dubai-based carrier already placed a $9.7 billion order last year for Boeing's 777 (below).

Meanwhile, Reuters reports another Middle Eastern airline, Qatar Airways, is stepping away from an earlier commitment to buy 20 Boeing 777s, and is now considering Airbus's proposed Enhanced version of the A340 -- which may mean the increased share of the Mideast market Boeing enjoyed for 2005 may erode this year.

FMI: www.boeing.com, www.airbus.com, www.emirates.com

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