CSA

Airbus scored an upset win over Boeing on Thursday as Czech airline CSA picked the European aircraft maker to supply 12 planes to expand its mid-range fleet.

The flagship Czech carrier’s president, Jaroslav Tvrdik, said after a board meeting that the airline had chosen CFM International, a joint venture of General Electric and France’s Snecma to supply engines as part of the package.

The announcement is a blow to Boeing, which is locked in a fierce battle for new orders with Airbus, as CSA’s 43 strong fleet is dominated by 28 mid-range Boeing 737-400s and -500s.

In addition, the US and EU are locked in a bitter trade dispute over state subsidies to the two plane makers.

“The model the company used for evaluation of the bids put Airbus at a disadvantage because of transitional costs. Despite that, we could clearly differentiate the submitted bids,” Tvrdik said adding the decision was unanimous on both the board of directors and the company’s supervisory board.

Tvrdik declined to give the value of the contract but said it would be in the lower part of the 10-20 billion crown (USD$393.4 million – USD$786.8 million) range the company had indicated.

“Both bids (for aircraft and engines) significantly beat expectations in the financial plan approved by the company’s general meeting for the strategy for 2004-2014,” he said.

A statement released by CSA said the airline will take three Airbus A320s in April 2005, and two A319s in June on operating leases to bridge the time until the 12 new aircraft can be delivered between 2006 and 2008.

Airbus also included the free supply of a training simulator in its bid.

CSA plans to expand its fleet to 63 by 2014 to respond to growing demand for eastern European destinations and increasing Czech appetite for travel abroad. The country joined the European Union in May.