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Asiana goes for Airbus A380 order

Jan 07,2011
Asiana Airlines, Korea’s second-biggest carrier, will buy six Airbus SAS A380s as it challenges larger rival Korean Air Lines on intercontinental routes.

The order is worth 2 trillion won ($1.78 billion) at list prices and deliveries will begin from April 2014, Asiana said in a regulatory filing yesterday.

The airline is still to decide whether it will order engines from Rolls-Royce Group or a Pratt & Whitney and General Electric venture.

Asiana will use the double-decker planes on flights to the U.S. and Europe in a bid to lure business travelers from Korean Air, which begins A380 services this year.

“There’s huge demand in the long-haul market, especially between Asia and the U.S.,” said Ryu Jae Hyun, a Hong Kong-based analyst at Mirae Asset Securities Co. “Korean Air is earning a lot of profits from that.”

Korean Air last month said it will start flying its first A380 in May. The plane will be fitted with 407 seats, with the upper-deck used exclusively for business-class passengers.

Asiana ordered 30 Airbus A350 planes, worth $7.2 billion at list prices, in 2008. The airline expects to take delivery of those aircraft from 2016. The deal also included options for 10 more. The carrier has 70 aircraft, including freighters. A380s can carry 525 passengers in a typical three-class configuration.


Bloomberg



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