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Boeing bags Dream Quantas contract

Sydney, Dec. 14 (Reuters): Boeing Co won a $10-billion order from Qantas Airways Ltd to deliver 65 Boeing 787 Dreamliner jets, with an option for a further 50 planes, dealing a blow to rival aircraft maker Airbus.

The decision by the Australian carrier comes amid a record year in aircraft orders for Boeing and Airbus, which is 80 per cent owned by European Aerospace Defence & Space Co and 20 per cent by Britain’s BAE Systems Plc.

Qantas, the world’s eighth-biggest passenger airline by market value, said it ordered 45 twin-aisled B787 jets with options for an additional 20.

The value of the 65 B787s was A$13 billion ($10 billion) at list price, Qantas said, adding it also took out purchase rights for an extra 50 B787 aircraft. The actual purchase prices of such major deals are typically made at a discount to the list price.

“We regard the firm orders and the options as basically a done deal,” Qantas CEO Geoff Dixon told reporters, referring to the first batch of 65 planes. He said the B787 ? to have its first test flight in 2007 ? was chosen because of the price of the aircraft as well as its technology, fuel efficiency and the distance a B787 would fly.

“This plan will give us a modern fleet offering maximum flexibility, lower seat-mile costs and greater fuel efficiency,” chairman Margaret Jackson said in a statement.

In the weeks leading up to the Qantas deal with Boeing on Wednesday, Airbus took out full-page newspaper advertisements in Australia to promote its A350, a rival to the B787. “It was a pretty tight decision,” said Peter Harbison, managing director of the Centre for Asia Pacific Aviation.

Boeing and Airbus have recorded more than $100 billion in orders this year. Airlines are replacing older fleets by investing in more fuel-efficient planes to help lower costs.

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