Boeing gets partial order from British Airways

LONDON -- British Airways divided its largest aircraft order in nine years between rivals Airbus and Boeing on Thursday as the airline prepares to increase capacity on its long-haul routes.

British Airways' decision to book a dozen Airbus A380 superjumbos along with 24 Boeing 787 Dreamliners in a much-anticipated order worth $8.2 billion at list prices ends decades of Chicago-based Boeing's dominance in providing planes to the carrier.

It is also a vote of confidence in Airbus' previously troubled double-decker A380. Deliveries of the aircraft were delayed for two years because of wiring and other technical problems that cost the company billions.

British Airways Chief Executive Willie Walsh said the airline had opted for the A380 rather than Boeing's newly revamped 747-8 for environmental and economic reasons.

The 525-seat Airbus plane will enable British Airways to increase capacity on flights out of the congested Heathrow Airport. British Airways will use the 250-seat Boeing 787s to build up new routes, including destinations the airline's existing fleet of Boeing 767s and 747s cannot serve.

"We see opportunities in South America, Asia and North America," Walsh said.

Analysts said the rivalry between the two plane manufacturers had likely resulted in a significant discount on the list prices for the order announced Thursday.

"Pricing may have played a role, as British Airways was able to play Boeing off against Airbus," said Howard A. Rubel at Jeffries & Co.

Collins Stewart analyst Andrew Fitchie said that BA probably paid closer to $6 billion.