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Bloomberg
Deutsche Lufthansa AG is trying to decide whether to take its first Boeing Co 787 Dreamliners, or to expand its fleet of Airbus SE’s marquee A350 wide-body jets as it updates its long-range aircraft, according to people familiar with the plans.
Lufthansa has requested proposals from both Airbus and Boeing, and is looking to order about 20 jets in a deal that may be finalised in the next few months, said the people, who asked not to be identified as the discussions are private.
The campaign to woo an influential blue-chip customer will probably hinge on more than the customary discounts for a deal valued at about $5 billion at list prices. The German airline is also asking the planemakers to help it get rid of its aging and fuel-hungry Airbus A340 models, the people said.
While Boeing and Airbus have on occasion taken back used jets to seal deals, they probably wouldn’t consider A340 trade-ins from just any potential buyer, said George Ferguson, an analyst with Bloomberg Intelligence.
Demand and book values for the four-engine aircraft have dwindled as airlines shifted to flying more-efficient twin-engine models.
“It depends on the customer, the price people want on that asset,†Ferguson said. “If you have A340s, you’re pretty motivated to get them off the books in a way that makes it palatable to shareholders.â€
COMPLEX FLEET
The purchase of wide-body aircraft can define a carrier’s strategy for decades, as the jets have a lifespan of 25 years or more and resale values vary widely. They are also a major investment for both airlines and manufacturers, with the latter depending on large orders to help the multibillion-dollar programs turn a profit.
Lufthansa has already ordered 25 A350s, 12 of which will operate in Munich by year-end, and holds options for 30 more. While it has vowed to reduce fleet complexity, five years ago the carrier ordered 34 Boeing 777-9 jets, with the first one due to arrive in 2020. Those would be on top of any potential order for the smaller 787s.