Air France Announces $7 Billion Aircraft Order

Air France announced a $7 billion aircraft order on Thursday, split between Airbus and Boeing.

Air France
Air France

The deals include an order for two more A380 superjumbos, the world's largest airliner whose two-year production delays have left manufacturer Airbus facing penalties to airlines.

Air France said it had also placed orders for 30 A320-family single-aisle aircraft from Airbus and 18 wide-body 777 long-haul aircraft from Boeing.

The Boeing 777 order is designed to help phase out Boeing 747s in the Air France network and includes 5 cargo aircraft.

Air France merged with Dutch national airline KLM in 2004 but the two operate separate fleets and networks.

Air France had already placed orders for 10 double-decker A380s with options for another 4. The airline exercised half of these options, bringing its firm order for the model to 12 and leaving it with margin to buy another two later.

Air France officials said the new order for two more A380s was part of a compensation agreement with Airbus to cover the initial delivery delays, but that the same agreement would also include unspecified cash penalties.

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