Airbus 'set to unveil Dreamliner rival'

AIRBUS is close to ending the increasingly fevered speculation over whether it will launch a new aircraft in direct competition to the new Boeing 7E7 Dreamliner.

After a trail of hints to the industry over the last few days, it is believed the European aircraft manufacturer could be about to make an announcement as early as next week on the start of the development phase of an A350.

An A350, many believe, will be an upgraded, customised spin-off of Airbus's successful 200-seater midmarket A330, but would be directly aimed at the same market as the 7E7 which Boeing has been promoting as the most efficient and environmentally friendly commercial jet ever.

If it gets from design board to production the new aircraft would be good news for British workers.

Airbus is 20% owned by BAE Systems and has key UK plants at Filton near Bristol and Broughton near Chester. Both have played central roles in the building of the A380, Airbus's 550-seater megajumbo, which starts test flights next year and goes into service in 2006.

It is unlikely an A350 could be in operation until 2008, when Boeing's launch partners, including Britain's First Choice airline, start flying the 7E7.

The A350 would offer the tantalising spectacle of the world's foremost manufacturers going head-to-head on similar products though industry cynics are concerned that Airbus is engaging in spoiling tactics to destabilise Boeing's efforts to secure big orders for the 7E7.

One well-placed industry source however said: 'here is more substance here than smokescreen.'

It is understood Singapore Airlines, a key supporter of the A380, has delayed ordering any 7E7s after being appraised of Airbus's potential plans for an A350.

Airbus refused to comment.