Boeing counterattacks
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June 20, 1997: 7:48 a.m. ET
Aircraft maker reaches $1 billion deal to build jets for British Airways
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NEW YORK (CNNfn) - Just one day after Airbus Industrie inked a $1.5 billion aircraft deal, Boeing Co. has launched a $1 billion deal of its own with British Airways Plc.
Under the deal confirmed at this week's Paris Air Show, British Airways has ordered five Boeing 777 and three 767 jets worth approximately $1 billion.
Boeing is expected to deliver the 767s in April and May of 1998 and the arrival of the 777s will occur the following September.
At the Paris Air Show Thursday, Boeing competitor Airbus Industrie, a European Consortium, reached a deal to deliver 50 A319 jetliners to Northwest Airlines for $1.5 billion.
The two aerospace firms have been in a dogfight for new contracts and Boeing has come out victorious in many of them. It recently reached exclusive agreements with AMR Corp.'s American Airlines, Delta Air Lines Inc., and most recently Continental Airlines Inc.
British Airways said the order will increase its fleet of 777s to 23 planes. The additional 767s will give British Airways 28 of those aircraft.
British Airways is currently facing some battles of its own. Its planned alliance with American Airlines is being held up by European Union regulatory concerns, along with those of consumer groups and rival airlines. Its "efficiency program," which will cut about 5,000 jobs from its 58,000 workforce has drawn the ire of labor unions.
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Boeing
British Airways
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