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Mon Jan 17,12:20 PM ET

Airbus Gears Up to Unveil New Flagship

By LAURENCE FROST, AP Business Writer

Photo: AP

PARIS - Airbus unveils its flagship A380 on Tuesday, the plane on which the company is betting its newfound status as the world's leading jet maker as well as the 10 billion euro ($13 billion) cost of developing the "superjumbo."

The largest ever passenger jet will be revealed during a lavish ceremony at Airbus' headquarters in Toulouse, southern France, attended by European leaders and almost 5,000 guests.

Photo: APAirbus has already taken firm orders for 139 of the $280 million planes, with options on dozens more, and says the program will break even after 250 sales — an objective it hopes to reach within three years.

"We're already well ahead of our own business plan," said Airbus CEO Noel Forgeard in an interview published Monday in financial daily La Tribune. Airbus is a subsidiary of European Aeronautic Defence and Space Co.

Airbus trailed Boeing Co. until 2003, when it delivered more planes than its U.S. rival for the first time — a feat it matched last year, with 320 deliveries to Boeing's 285, and is likely to repeat this year.

Sustaining that lead will depend partly on the outcome of Airbus' audacious bet on strong demand for the new behemoth, with its 262-foot wingspan and a tail that stands as high as a seven-story building.

Airbus hopes to sell 750 superjumbos to airlines operating services between the busiest airports, mainly in Asia, which serve as hubs, or stopovers between connecting flights.

Boeing, on the other hand, sees demand for only 400 jets larger than its 747 over the next two decades, as air passengers increasingly gravitate toward direct flights aboard a new generation of smaller, long-range jets like its planned 7E7.

Photo: APIn a three-class cabin layout, the A380 seats 33 percent more passengers than the 747 but offers 49 percent more floor space — leaving additional room for features such as on-board shops, bars, casinos or even nurseries, which could fundamentally alter the experience of taking a long-haul flight.

How the extra space is used will be left up to the airlines, whose A380 cabin designs have remained closely guarded. In the future, low-cost carriers could operate the A380 with a single economy-class configuration accommodating as many as 800 passengers.

The superjumbo's entry into service next year is also a challenge to already stretched airport infrastructure.

London's Heathrow airport has said it is spending over $800 million, providing everything from double-decker passenger ramps to enlarged baggage conveyors capable of processing 555 passengers on one flight.

Other airports are spending billions more on similar improvements, but there is concern that some — particularly in the United States — may not be ready in time.

"We've put some friendly pressure on two or three airport authorities that we consider to be a bit behind," Forgeard told La Tribune.

Whichever way the wind blows in Toulouse on Tuesday, the A380 seems certain to become a milestone in civil aviation history alongside the 747 and Concorde. Unlike the supersonic Concorde, however, whose claim to fame was how fast it crossed the Atlantic, this latest fruit of European aerospace cooperation will ultimately be judged on how fast it makes money.

The Associated Press contributed to this report.

Copyright 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press. shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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