LONDON - British Airways PLC has decided to issue tender documents to aircraft manufacturers for providing it with new long haul aircraft. BA has also issued the documents for engine manufacturers. Major players like Airbus and Boeing have been invited by BA for the bid.
Besides these two companies, engine manufacturers like Engine Alliance, General Electric and Rolls Royce have also received invites to participate in the bidding process. The company said it was hoping to place firm orders by 2007. BA also said that the aircraft being considered for the purpose included Airbus's A330, A350, A380 and Boeing's 787, B777 and B747-8.
"For the past four years, we have grown capacity by using our aircraft more efficiently. In order to continue to grow our long-haul business we now need additional long-haul aircraft," BA Chief Executive Willie Walsh said in a statement. In a conference call to reporters, Mr Walsh said it was too early to estimate the number and price of the aircraft.
"We are very flexible at the moment. It is an excellent time to be talking to the manufacturers," he said, adding that he thought they would eventually end up with both mid-size as well as long-haul aircraft from Airbus and Boeing.
Earlier BA had reiterated its position of not taking new aircraft till it had a new terminal at Heathrow Airport in 2008. Meanwhile Mr Walsh said he was confident of resolving the 2.1 billion pound ($3.9 billion) pension deficit problem at BA by November.
"Launching the competition highlights the need for us to address our 2.1 bln stg pension deficit. It is a major blocker to growth and investment in our business but I am confident we will resolve it," he stressed. BA shares closed at 450 pence yesterday night.
