Free Republic

SEOUL, South Korea - South Korea's flag carrier Korean Air said Tuesday it will buy 25 aircraft from Boeing Co. for around $5.5 billion, the largest aviation deal in the nation's history. Under the agreement, Boeing will deliver 15 passenger aircraft and 10 freighters to Korean Air Co. — the world's biggest mover of air cargo — over a 10-year period beginning in 2009, the airline said in a statement. Korean Air will purchase 10 long-haul 777-300s and five medium-range 737-900/700 passenger jets, as well as 10 freighters, five 747-8Fs and five 777-200s. It has an option on an additional...

WASHINGTON - The Air Force awarded a lucrative contract Thursday for search and rescue combat helicopters to a team led by aerospace giant Boeing Co. Chicago-based Boeing beat out rival Lockheed Martin Corp. and helicopter maker Sikorsky Aircraft for the contract to build 141 helicopters by 2019 for the Air Force's fleet of rescue aircraft, known as the Combat Search and Rescue program. The initial contract award is for $712 million; the program may be worth as much as $13 billion. Some Wall Street and industry analysts had thought Maryland-based Lockheed would win. The Lockheed version had a roomier cabin...

Fedex has cancelled its order for Airbus aircraft and switched its order to rival Boeing instead. Fedex Express said it had cancelled its order for 10 Airbus A380-800F superjumbo because of delivery delays. Instead it has ordered 15 Boeing 777 freighters - to be delivered between 2009 and 2011 - and has an option to take a further 15 aircraft. Airbus said it regretted the decision but understood Fedex's "need to urgently address capacity issues". Shares in Airbus owner EADS closed more than 3% lower on the French stock exchange on the news. 'Best decision' "The availability and delivery timing...

PARIS (AFP) - European aircraft maker Airbus plans to reduce by 80 percent the number of subcontractors used by the company as part of a vast restructuring plan aimed at reducing costs, a company spokesman said. The number of subcontractors is to be cut from nearly 3,000 to about 500, the spokesman said, confirming a report in the Financial Times Deutschland published on Monday. The group, based in Toulouse, southern France, also plans to cut its administrative costs by 900 million euros (1.14 billion dollars) in total by 2010 and its supply costs by 350 million euros over the same...

The U.S. is considering deploying its advanced Patriot missile defense system near Tokyo after North Korea's recent missile and nuclear tests, a newspaper reported Sunday. Washington unofficially informed the Japanese government it is considering putting Patriot Advanced Capability 3 surface-to-air interceptor missiles around Yokota Air Base in Tokyo's western suburbs and around Yokosuka Naval Base, south of the capital, the Nihon Keizai newspaper reported without saying how it got the information. The added defenses would cover critical U.S. military installations on the outskirts of Tokyo. The move would be part of a previously announced U.S.-Japanese effort to deploy PAC-3 missile...

LONDON (Reuters) - British Airways launched a long-awaited competition on Tuesday to replace its fleet of 114 long-haul Boeing aircraft, a move that could generate crucial orders for Boeing's rival Airbus. Europe's third-biggest airline, which wants to take delivery of the first new planes by early 2009, said it was too soon to say how many planes it would acquire, although analysts said the bill would be at least $7 billion. An early order date could benefit Boeing, since Airbus is struggling to launch its proposed new mid-sized A350 model -- now set for 2012 deliveries at the earliest --...

The head of Airbus' parent firm has said he is against state involvement in the business amid reports the German government may buy into the company. Thomas Enders, the German co-chief executive of EADS, said there was "no reason" for Berlin to take a stake in the troubled enterprise. Newspaper reports have suggested the German state may buy Daimler-Chrysler's 7.5% holding in the business. The French and Spanish governments already own shares in the company. Jobs concern EADS has been weakened by costly delays to the flagship Airbus A380, with the first delivery of the high-profile plane put back to...

ST. LOUIS, Oct. 13, 2006 -- The Boeing Company [NYSE: BA] has begun flight testing for the Advanced Tactical Laser (ATL) Advanced Concept Technology Demonstration (ACTD) program and has generated "first light" of ATL's high-energy chemical laser in ground tests, achieving two key milestones in the laser gunship development effort. During the "low-power" flight tests, which began Oct. 10 and conclude this fall, the ATL ACTD system will find and track ground targets at White Sands Missile Range, N.M. A low-power, solid-state laser will serve as a surrogate for ATL's high-power chemical laser. To prepare for the tests, the ATL...

PARIS - The new chief executive of Airbus pledged job cuts at the troubled planemaker and said Tuesday that its biggest handicap against rival Boeing is the weak dollar, not deep production delays for its superjumbo. Parent company EADS named one of its CEOs, Louis Gallois, to lead Airbus on Monday, after his predecessor Christian Streiff resigned just three months into the job. Gallois also continues to serve as co-chief of European Aeronautic Defence & Space Company NV. Gallois said on Europe-1 radio Tuesday morning that a new recovery plan "will be painful, because there will be job cuts." He...

PARIS - Airbus chief executive Christian Streiff resigned Monday after a little more than three months as head of the troubled European plane maker and parent company EADS named one of its own co-CEOs to replace him. European Aeronautic Defence and Space Co. said in a statement Louis Gallois will succeed Streiff in the top job at Airbus while continuing in his current role as joint head of the Franco-German defense group. Streiff's departure deals a fresh blow to Airbus as it struggles to limit the damage from a costly two-year delay to the heralded A380 superjumbo jet. The 52-year-old...

LONDON (AFP) - European aircraft maker Airbus has set aside around 1.0 billion euros (1.26 billion dollars) to compensate airlines for delays in delivery of its troubled A380 superjumbo. The Daily Telegraph newspaper said that the estimate, which was equivalent to 690 million pounds, was contained within the 4.8-billion-euro loss forecast last week as a result of chronic delays to the flagship A380. Airbus has not made no provisions however to cover possible cancellations from airlines for the 134 orders taken so far, the report said Monday. Airbus hoped it could "satisfy angry customers by either reducing the cost of...

DUBAI (AFP) - Dubai-based carrier Emirates announced plans to buy 20 747-8 Freighter planes from US aerospace giant Boeing for a total of 5.6 billion dollars. "Emirates Airline today signed a contract for 10 Boeing 747-8Fs, and announced purchase rights for a further 10 747-8Fs," the company said in a statement. "The combined value of these 20 aircraft is worth an estimated 5.6 billion US dollars at list prices." The "firm order" of 10 aircraft is valued at some 2.8 billion dollars and is scheduled for first delivery in 2010, it said. The contract was signed in Dubai by Emirates...

By LAURENCE FROST, AP Business Writer PARIS - The two chief executives of EADS have agreed to accept the resignation of Airbus CEO Christian Streiff, a person close to the European planemaker said Friday. An Airbus spokeswoman, however, denied that Streiff was leaving the company. EADS co-CEOs Tom Enders and Louis Gallois have agreed that Streiff should leave the company, the person said, several days after Streiff threatened to resign amid a dispute over the transparency of financial and other reporting by Airbus to EADS. The person asked not to be identified because the discussions were confidential. Airbus denied that...

Spain to Boost Participation in France-Based Airbus Project NEW YORK (AP) -- Spain is set to boost its participation in the France-based Airbus project, with an eye to a larger stake in the A380 superjumbo and in designing future generations of aircraft, the two countries' foreign ministers said Thursday. "Spanish industry is very important for Airbus and Spain aims to boost its participation in Airbus," said French Foreign Minister Philippe Douste-Blazy at a press conference. Spain reportedly hopes to increase its 5.5 percent stake in European Aeronautic Defence and Space Co. (EADS) to 10 percent. EADS owns 80 percent of...

LONDON (AFP) - BAE Systems has announced that shareholders have backed the proposed sale of its 20-percent holding in troubled European aircraft maker Airbus to Paris-based peer EADS. The sale, totalling about 2.75 bilion euros (3.5 billion dollars), was announced Wednesday and is expected to complete no later than October 14. The disposal will hand Franco-German EADS outright ownership of Airbus, whose flagship A380 superjumbo was hit Tuesday by fresh delays. "At an extraordinary general meeting held earlier today, the shareholders of BAE Systems passed a resolution approving the disposal of BAE Systems' entire interest in Airbus," BAE said in...

SEATTLE, Sept. 29, 2006 -- Boeing [NYSE:BA] and Ryanair, Europe's largest and most profitable low-fares airline, announced today an order for 32 Next-Generation 737-800s. Deliveries for this order to the Dublin-based carrier, valued at $2.25 billion at list prices, are scheduled to begin in 2008. The order involves exercising options included in a previous purchase contract. "With its exceptional reliability, environmental performance and low operating costs, the Boeing 737-800 has played an important role in enabling Ryanair to deliver Europe's lowest fares and unmatched punctuality to our passengers," said Michael O'Leary, chief executive of Ryanair. "By adding 32 more Boeing...

NEW YORK (Reuters) - Boeing Co. (NYSE:BA - news) announced new orders for 47 planes from unidentified buyers on Thursday, worth more than $4 billion overall, including 16 for its new carbon and titanium 787 Dreamliner. The order pushes the U.S. planemaker's tally to 632 firm orders so far this year, well ahead of European rival Airbus (EAD.PA), which has confirmed only 222 firm orders this year, but picked up a prestigious 35 plane order from German carrier Lufthansa (LHAG.DE) on Wednesday. On its online order book, Boeing on Thursday noted new orders for 16 of the mid-sized, twin-aisled 787s,...

SEATTLE, Sept. 12, 2006 -- The Boeing Company [NYSE: BA] and Atlas Air Worldwide Holdings today announced the carrier has ordered 12 747-8 Freighters, making Atlas the North American launch customer for the airplane. At list prices, the order is valued at about $3.4 billion. Atlas will begin taking delivery of the airplanes in 2010 and expects all 12 aircraft to be in service by the end of 2011. "With this order, Atlas Air remains the leader in providing the capacity and operational flexibility required by our air cargo customers using the state-of-the art freighter platform," said William J. Flynn,...

AIRBUS will confirm tomorrow that it has lost the lead in aircraft orders to its rival Boeing after five years of dominance, The Times has learnt. The beleaguered jet builder will collate its half-year order book at a sales meeting in Toulouse tomorrow and a yawning gap between the two companies will become apparent. Airbus has definitive orders for 145 to 150 aircraft so far this year. In May it had 105 orders. Boeing has three times as many with 445 (358 in May). The disparity in sales figures emphasises the difficulties facing Airbus, which announced production delays in its...

ST. LOUIS, June 26, 2006 -- A Boeing-led [NYSE: BA] industry team and the U.S. Missile Defense Agency (MDA) took a major step toward demonstrating the capability of the Airborne Laser (ABL) by successfully firing surrogate lasers from inside the aircraft. During recent ground tests at Boeing facilities in Wichita, Kan., the team placed the lasers in the ABL aircraft, a modified Boeing 747-400F, and fired them repeatedly into a measuring device called a range simulator. The tests verified that the ABL team properly aligned the optical beam train, a series of optical components, steering and deformable mirrors, and sensors...