Air France-KLM Ink Potential $14.4 Billion Plane Order With Airbus
Over in Paris, Boeing is not the only company making out like a bandit with new plane orders. Yesterday, local "hero" company Airbus also had some good news to announce. Specifically, it's just finalized a firm order with Air France-KLM to sell the airlines 25 of its new A350-900 airplanes (which compete directly with the Boeing 787).
Air France-KLM are also taking out options to buy an additional 25 A350-900s at a later date. At a list price of $287.7 million, this week's order could mean as much as $14.4 billion in new revenue for Airbus if all options are exercised.
All of these planes will be equipped with Trent XWB engines from Rolls-Royce , an engine which the companies say will help to reduce fuel consumption aboard the A350 by 15% compared to certain unnamed "current aircraft." Air France Industries KLM Engineering & Maintenance will be handling the maintenance of the engines going forward.
Air France-KLM clarified that this week's order finalizes an order initially announced back in September 2011, for 25 A350-900s -- and also for 25 Boeing 787-9s. The airlines subsequently announced an additional order to buy 25 Boeing 787-9s, and option 25 more.
Air France-KLM say they will begin flying the Boeing planes upon their delivery in 2016, with the A350s entering service two years later, in 2018.
The article Air France-KLM Ink Potential $14.4 Billion Plane Order With Airbus originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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