Word: airbuses
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Another point of conflict was the proposed construction of a new, 200-seat B10 European Airbus, a mainly Franco-German project that is aimed ambitiously at loosening the U.S. hold on the world's commercial aircraft market. To enhance the Airbus' chances, the French and Germans have tried to persuade the British to join in its development, with a standing offer to build the wings and other key parts...
...British, however, are torn between the Airbus proposal and two competing offers from the U.S. One is from McDonnell Douglas, which is seeking Rolls-Royce engines for its medium-range ATMR; the other is from Boeing, which wants both British engines and wings for its 757. Supporters of the Boeing project claim it would mean 17,000 new jobs for British industry. Even Britain's most strongly pro-European newspaper, the Guardian, argued that "Callaghan should choose the project which promises to sell the most airplanes. This is not a dilemma in which Euro-loyalty ought to play too large...
...press conference, United Airlines Chairman Edward E. Carlson and President Richard J. Ferris explained the decision. Ferris conceded that his airline's experts had been attracted by the advanced version of the European Airbus; designated the B10, it is a scaled-down, 200-passenger version of the present Airbus, four of which are already flying for Eastern Air Lines. The 767 won, said Ferris, because of its superior performance for passengers and pilots alike. Passengers, accustomed to the sardine seating in the present jumbos, will find the 767 less claustrophobic. The coach section will have seven seats abreast, aligned...
Shortly before United's announcement, Airbus Industrie, the state consortium owned jointly by France, West Germany and Spain, took an early lead in the sale of new-generation jets by winning 20 orders, worth $500 million, from Lufthansa, Swissair and Air France for the B10. Airbus executives pretended not to be discouraged by Boeing's victory. "United's order was not a launch order for us as it was for Boeing," said one Airbus official in Paris...
...avoid another boom-bust cycle. Boeing's first choice for a partner would be British Aircraft Corp., which would give the new planes a European flavor and make them easier to market within the European Community. So far, the British have not decided whether to join Boeing or Airbus. The United decision may give them a nudge...