Etihad to buy 12 Airbus jets

Dubai: Etihad Airways said it would purchase 12 wide-bodied Airbus aircraft yesterday, and also deferred delivery of its A380 aircraft by four years.

At the Paris Air Show, the Abu Dhabi carrier announced a plan to buy four A340-600s, five A330 passenger aircraft and three A330 freighters, worth $2.2 billion at list prices.

The planes will be delivered between 2008 and 2011, and will increase the airline's fleet to 42 airplanes.

Etihad became the latest Gulf carrier to announce large aircraft purchases at the air show, after Qatar Airways and Emirates announced purchases worth nearly $19 billion.

Ambitious plan

"Each new Airbus aircraft within the new order has been specifically chosen to fit our ambitious development plans," said Etihad CEO, James Hogan.

Hogan wasn't available for comment yesterday, but it's likely Airbus awarded significant discounts on the order.

Etihad has been in talks with the airline maker over compensation for the 22-month delay of the A380, of which Etihad has ordered four. Recently, Hogan said it preferred discounts on future purchases rather than cash compensation.

Originally scheduled for delivery in 2009, Etihad now will receive its A380s in 2013, instead using the smaller A330s and A340s ordered yesterday to manage growth.

Global network

"We have agreed to defer the A380 delivery date with Airbus to 2013 when our business model and global route network will be better suited to competitive commercial opportunities offered by this aircraft," Hogan said in a release.

The 12-plane purchase marks somewhat of a shift for Etihad, according to recent public statements.

Earlier this year, Hogan said the airline did not plan on making any major announcements in 2007, as it hunkered down to its three-year plan to stop losses and break even by 2010.

Etihad is also planning a purchase of narrow-bodied aircraft to serve as feeder planes for its network in 2008.

This year, Etihad launched flights to Kuala Lumpur, Kochi, Thiruvananthapuram and Sydney, with Dublin slated for July and Milan and Singapore in September.