Air France-KLM To Order USD$20 Bln Of Planes - Report

Air France-KLM plans to order Airbus or Boeing long-haul aircraft worth over USD$20 billion at list prices, French newspaper La Tribune reported.

The carrier will order around 100 Airbus A350s or Boeing 787 Dreamliners as early as the end of 2009, the paper said in a preview of its Thursday edition, not naming its sources.

A spokeswoman for the carrier declined to comment on the report on Wednesday.

The world's two biggest aircraft makers are locked in a tough battle for orders for their new mid-sized, twin-aisle models as airlines cut capacity to cope with falling demand caused by the global economic crisis.

The delayed 787 has so far won 878 firm orders from 57 customers, with the first delivery planned in the first quarter of next year following an initial test flight due in the second quarter of 2009.

Airbus's rival A350 is not expected to enter service until three years later, in 2013, and had notched up 478 orders as of January. Both aircraft rely on a leap in technology allowing planes to be built to a greater degree out of composite carbon materials that reduce weight and cut fuel bills.

Airbus is keen to avoid a repeat of costly days to its A380 superjumbo by sticking to its schedule for the A350.

Airbus overtook Boeing to reclaim the top spot in total plane orders last year, but 2009 is expected to see a sharp drop in aircraft sales.