Airbus to go ahead with A330 wide-body upgrade
The French firm announced it will build the A330-800neo and A330-900neo, equipped with new Rolls-Royce engines
London: Airbus Group NV said it will go ahead with a project to upgrade and re-engine its A330 plane, extending the life of the popular wide-body model in a challenge to Boeing Co.’s 787 Dreamliner.
Airbus will build the A330-800neo and A330-900neo, equipped with Trent 7000 engines from Rolls-Royce Holdings Plc, following a decision by its board of directors, the Toulouse, France-based company said in a statement on Monday.
The aircraft, which will also receive aerodynamic enhancements and new cabin features, should reduce fuel consumption by 14% and offer a range increase of up to 400 nautical miles, the European manufacturer said.
“The A330 is a very important margin contributor for our group," Airbus chief executive officer Tom Enders said in the release. “It is also one of the most reliable and efficient commercial aircraft ever. Customers love it."
Airbus has pondered the future of the A330, which sits between the A320 single-aisle family and the new A350 made of composite structures. The aircraft has been a popular alternative to the 787 Dreamliner, which was plagued by delays.
Development costs will be incurred from 2015 to 2017, with the plane entering service in the last quarter of that period. The investment will wipe 70 basis points (or 0.7 percentage point) from Airbus’s return on sales during that time.
Rolls-Royce said in a separate statement that it will be the exclusive provider of engines, after receiving the lion’s share of orders for the original 20-year-old model. General Electric Co. is the alternative turbine provider on the existing A330, though the US company had said that it wouldn’t invest in a new engine for an A330neo. Bloomberg
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