Air Malta chooses Airbus

Air Malta will be ordering the European Airbus aircraft with CFM engines for its fleet, industry sources said yesterday.

Talks have been held over the past weeks with Airbus and the American manufacturer, Boeing.

CFM International is a joint company set up between SNECMA of France and the US' General Electric Company.

The final decision on the contract, believed to be in the region of $500 million and $600 million, was taken at an Air Malta board meeting last week and is expected to be announced officially soon.

The first of the aircraft is expected to be in Malta in two years' time.

Airbus Industrie was established in 1970 as a European consortium of French, German and later, Spanish and UK companies in order to compete with the American manufacturers. Thirty years after its creation, Airbus became a single integrated company.

Airbus had the edge over Boeing in the final round of negotiations and representatives of both manufacturers were in Malta for talks early last week.

The Maltese airline currently has a mixed fleet which includes two Airbus A320s. The airline will not be buying the new aircraft, but will be leasing them from the International Lease Finance Corporation with an option to buy them.

Industry sources said last week that negotiations were very complex because aircraft makers made the air frame and wiring and although each had their preferred suppliers, negotiations had to be taken in hand on furnishing the aircraft, and on the supply of engines, instruments and in-flight equipment.