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Boeing expects $4.7 bn in orders for 777 jet model 

Jeff Cole  
Jun 28: Boeing Co expects to notch orders valued at about $4.7 billion for an additional 26 of its latest long-range 777 jetliner models during the next month, executives said.

Achieving that target would cement a strong line-up of about six initial "launch" customers for the newest variants of the big two-engine airliner, which are at the center of the US manufacturer's strategic duel with rival Airbus Industrie of Europe in the market for large transoceanic airliners.

So far, Boeing has announced firm orders for 14 of the 777-200X and 777-300X aircraft. That includes one order for seven of the jets announced Tuesday by EVA Airways of Taiwan and another seven-plane deal announced earlier this year involving Japan Airlines.

The executives familiar with Boeing's sales targets say the next two orders are expected to come from All Nippon Airways of Japan, which could buy six or more jets, and the aircraft-leasing unit of General Electric Co, where Boeing hopes to place 10 of the planes. A separate GE division is the exclusive provider of engines for the new 777s, including the farthest-flying 777-200x, a 301-seat aircraft with a range of just over 10,000 miles.

If the added orders are gathered as Boeing expects, the Seattle-based company would have a total of 40 airliners on order, valued at more than $7 billion based on list prices, to unveil at the Farnborough Air Show in Britain in late July. Airlines, however, rarely pay list prices.

Boeing officials decided to offer the two new versions in February, about a year after Airbus began writing up orders for the two models it offers in the same market, both of which are variations of the four-engine A-340.

Airbus has chalked up 63 firm orders, plus a notable number of purchase option agreements and other "commitments" for the A340-500 and the A340-600, which carry between 313 and 365 passengers.

Boeing's latest boost from EVA included orders for four of its 777-300x models and three of the 777-200 version, with a combined value of about $1.25 billion. Deliveries are expected to begin in 2005.During an interview earlier this week regarding the EVA order, Boeing executive vice-president Seddik Belyamani said the advantage that the new 777s enjoy in speed and weight "must keep them [Airbus officials] awake at night."

But Airbus executives say they aren't losing any sleep yet. In a recent interview, Airbus sales chief John Leahy said the 777 is "a fine airplane," but he has been struck by the slow emergence of support among airlines for the new variations.

The contest for the EVA order was hard-fought and Boeing is expecting another tough shoot-out at Malaysian Airlines System, which is considering buying six or more of the Boeing planes. Longer term, Boeing hopes to win orders from many Asian carriers, including Air China, China Southern Airlines, Cathay Pacific Airways, Thai Airways International and Singapore Airlines.

Separately, Boeing said it is in negotiations to buy SVS Inc, an Albuquerque, high-tech company that specialises in electro-optical systems and imaging.

Boeing, which declined to disclose the potential price, said SVS will strengthen its role in airborne and space-based lasers.

-- (The Wall Street Journal)

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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