TEXT OF STORY
STEVE CHIOTAKIS: The European plane-maker Airbus has just pulled off what it calls the biggest sale in the history of commercial aviation. The company has sold around $15 billion worth of aircraft to a budget airline in India.
Marketplace’s Stephen Beard reports, the deal’s gonna put a lot of pressure on Airbus’s biggest rival, Boeing.
STEPHEN BEARD: Airbus says its firm order includes 150 of its new A320 NEO jets. This is not a completely new plane. It’s an upgraded version of the popular single aisle aircraft. Airbus’ decision to revamp the plane with a more fuel efficient engine was controversial. Boeing dismissed the move. The U.S. company said most airlines would prefer to wait for an all-new model. The deal announced today vindicates Airbus says Laurie Price, an aviation expert with consulting firm Mott McDonald.
LAURIE PRICE: The key thing is that in a time of escalating fuel price Airbus are offering airlines looking at re-equipment with an option that will give substantial fuel savings.
Boeing had indicated that it would not carry out a similar revamp on its best-selling single aisle plane — the 737. In the light of today’s deal by Airbus Boeing may now change its mind.
In London this is Stephen Beard for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.