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Northwest chooses Airbus
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June 16, 1997: 6:48 a.m. ET
U.S. carrier to buy 50 Airbus jets, valued at $2 billion
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NEW YORK (CNNfn) - Northwest Airlines is expected to order up to 50 small jetliners from Airbus Industrie, giving the European consortium a much-needed boost in its battle with industry leader, Boeing Co.
The anticipated order is valued at $2 billion, The Wall Street Journal reported on Monday.
The Airbus victory comes at a time when Boeing is striking exclusive agreements with at least three U.S. carriers: AMR Corp.'s American Airlines, Delta Air Lines Inc., and most recently Continental Airlines Inc.
Northwest's order consists of 50 narrow-body A-319 models with an option for up to 100 more jets. If exercised, the contract would have a total value of about $6 billion.
The carrier, which is one of Airbus' best North American customers, will use the planes to replace its aging fleet of Boeing 727s and McDonnell Douglas Corp. DC-9s.
Northwest is the fourth largest airline in the United States.
Northwest issued a statement saying it would not comment on the Journal report. An Airbus spokesman denied a Northwest purchase was imminent, telling Reuters "we are in talks with them as with many other companies."
In a separate announcement, Airbus said it would build two larger versions of its biggest jet, the A340, by the year 2001.
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Airbus
Boeing
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