By MICHAEL HARRISON
Airbus Industrie launched its 555-seater super-jumbo, the A380, yesterday, creating or safeguarding more than 80,000 jobs in the United Kingdom.
It also threw down the gauntlet to the United States, predicting that it would capture its first American airline customer for the new aircraft within the next 12 months.
The forecast came as the European consortium formally gave the go-ahead for the US$12 billion ($27 billion) development of the aircraft, formerly known as the A3XX, amid renewed signs that it could provoke a damaging trade war with the US.
President Clinton warned earlier this week that state funding for the A380 from the governments of the four Airbus partners could be in breach of a 1992 agreement between the US and the EU on support for large commercial aircraft.
Analysts believe the incoming administration of George W Bush could take a tougher line if the A380 proves a serious threat to Boeing's monopoly over the jumbo jet market.
Noel Forgeard, the Airbus chief executive, dismissed US suggestions that state funding of a third of the aircraft's development costs breached the 1992 accord.
"These are repayable loans under commercial conditions," he said at the A380 launch in Toulouse.
"These are strictly compliant with the agreement signed between the United States and the EU."
Airbus has 50 launch orders for the A380 from six customers although industry sources say these initial aircraft are being supplied at discounts of up to 30 per cent on the $230m list price.
BAE Systems, the UK partner in Airbus with a 20 per cent stake, said the A380 programme would create at least 22,000 UK jobs, safeguard a further 62,000 and generate net exports of about £20bn over the next 40 years.
The UK will build wings for the A380 at sites in Broughton, north Wales, and Filton near Bristol. BAE is already recruiting 2,000 engineers for the development programme.
The British government is providing launch aid of £530m for the aircraft repayable over 17 years. Stephen Byers, the Secretary of State for Trade and Industry, said the funding would secure a return for the taxpayer and provide benefits for the national economy.
Airbus puts the market for super-jumbos at 1,500 aircraft worth $320bn over 20 years and claims the A380 will be 15 per cent more cost efficient than the latest Boeing 747.
But Boeing, which is developing a stretched version of its 747 called the 747-400X, puts the market for 500-plus seater aircraft at nearer 400 and claims its stretched 747 will be more efficient than the A380.
The A380 will enter service with Singapore Airlines in 2006. The other launch customers are Emirates, Air France, Qantas, Virgin Atlantic and the US leasing company ILFC.
Large orders are thought to be imminent from the German flag carrier Lufthansa and the two freight operators, Federal Express and Atlas.
However, John Leahy, the commercial director of Airbus, said he was confident that the A380 would secure its first order from a US passenger airline in the next 12 months.
This would a psychological blow to Boeing, which generates a large proportion of its civil aircraft profits from the monopoly it holds over the market.
Airbus launches biggest airliner
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