Airbus expects to propose a competitor to Boeing Co.'s planned 7E7 wide-body jetliner to its shareholders in coming weeks, the Wall Street Journalreported today.
The report said Airbus is designing the A350, which has been under discussion since the middle of this year, to carry more passengers and fly further than the US plane.
The latest version could cost the company as much as €3.5 billion ($4.6 billion) as engineers plan to design new wings with increased aerodynamic efficiency to boost the jet's range and speed, the paper reported.
Earlier, Airbus officials had said that building the A350, which would be based on the current A330 two-engine wide-body jet, would cost as much as €3 billion.
Boeing is expected to spend about $6 billion to develop its efficient 7E7 wide-body jetliner from scratch, excluding the money that suppliers are investing on items such as engines, landing gear and other systems.
Meanwhile, speculation is mounting over Aer Lingus' plans to upgrade its long-haul fleet with German newspaper Handelsblatt reporting today that the company is in talks with Airbus about the purchase of 12 A350s.
Airbus and Aer Lingus officials were not immediately available to comment. The Irish Times reported last month that Aer Lingus was in advanced negotiations with both manufacturers to upgrade its long-haul fleet .
The airline reportedly needs about 10 or 11 new aircraft and believes it can secure a good deal in the current environment with Boeing and Airbus locked in fierce competition to build up their order books, especially in Europe.