Andrew Doyle/MUNICH
SAS has selected the Airbus A330/A340 family for its planned long-haul fleet renewal but is holding off signing a firm order until its internal cost cutting targets have been met.
The airline has decided to reject Boeing's offer of 10 Boeing 777-200ERs in favour of a mix of A330-300s and A340-300s, say sources close to the competition. Airbus is understood to have proposed four A330s and six A340s, plus a further five options for either type. Negotiations with engine manufacturers are already under way ahead of an engine selection for the A330s, with the choice between the General Electric CF6-80E1, Pratt & Whitney PW4000 and Rolls-Royce Trent 700. According to the request for proposals, SAS wants to start taking delivery of the aircraft next year.
If the tri-national Scandinavian flag carrier goes-ahead with its long awaited widebody order, the deal would represent a significant coup for Airbus. The consortium has not had any sales success with the Scandinavian carrier since the late 1970s, when the airline ordered four A300B2s, aircraft which are no longer operated.
A major factor in the decision was SAS's concern over the economic outlook for its key markets such as Asia, with the 777-200, which is slightly larger than the A340-300, seen as offering too much capacity, say the sources. The airline's long-haul fleet comprises 14 Pratt & Whitney PW4000-powered Boeing 767-300ERs, and these are expected to ultimately be replaced by the new aircraft.
SAS, which had originally hoped to place an order by the end of 1998, now says it expects to make a final go-ahead decision by the end of this year. It declines to confirm its selection of the Airbus types.
"We are still in the evaluation process and we haven't set any date for completing that process," says SAS. "What we have said is that it will be completed by the end of 1999."
One manufacturing source says: "They have an ambitious cost-cutting programme and they're not there yet."
SAS is adjusting capacity to reflect lower-than-expected traffic growth on its network, now predicted to be 6% during 1999. From March, SAS will no longer fly to Hong Kong, Rotterdam, Venice and Archangel - routes which it says generated weak earnings.
SAS has in the past re-opened the bidding in its order competitions several times. The two manufacturers had been involved in the latest widebody evaluation for more than one-and-a-half years.
Boeing won the Scandinavian carrier's last major order, for more than 80 narrowbodies (including options), with the 737-600.
Source: Flight International
