VZCZCXYZ0000
RR RUEHWEB

DE RUEHDL #0391 1371611
ZNR UUUUU ZZH
R 171611Z MAY 07
FM AMEMBASSY DUBLIN
TO RUEHC/SECSTATE WASHDC 8265
INFO RUEHRL/AMEMBASSY BERLIN 0126
RUEHLO/AMEMBASSY LONDON 2313
RUEHFR/AMEMBASSY PARIS 0260
RUEHBS/USEU BRUSSELS

UNCLAS DUBLIN 000391 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR MAC/OEURA/CPD/RMCLAUGHLIN 
 
E.O. 12958: N/A 
TAGS: ECON EAIR ETRD PREL EI
SUBJECT: AER LINGUS DECIDES AGAINST BOEING FOR NEW 
LONG-HAUL AIRCRAFT 
 
 
¶1.  On May 16, Aer Lingus CEO Dermot Mannion told the 
Ambassador that the carrier had effectively decided against 
Boeing for a planned purchase of 8-12 long-haul planes, which 
could have netted the U.S. manufacturer roughly USD one 
billion.  Mannion noted that he had ended talks with Boeing 
on May 6, having been unable to come to terms on pricing for 
the 787 Dreamliner and on a delivery package for interim 
aircraft pending the 787s' projected 2012 delivery.  Aer 
Lingus, he added, had accepted Boeing's decision to set a 
late April/early May deadline for a purchase decision, given 
the queue of carriers that wished to place 787 orders. 
(Note: A Boeing sale had been the Embassy's highest 
commercial advocacy priority over the past year.) 
 
¶2.  Mannion pointed out that Aer Lingus had not yet completed 
a deal with Airbus for A350 aircraft.  He noted that interim 
deliveries of A330s would feature centrally in an agreed 
package (with Aer Lingus having leased two A330s this year in 
anticipation of new U.S. market opportunities with U.S.-EU 
Open Skies).  Mannion cited speculation that the dollar's 
recent weakening might help to close the 15 percent price 
differential between the 787 and A350, but he explained that 
Airbus aircraft were also priced in dollars.  When the 
Ambassador asked whether theoretical difficulties in closing 
a deal for A350s might lead Aer Lingus to reconsider the 787 
option, Mannion said that he could not envision reopening 
talks with Boeing. 
 
¶3.  Mannion expressed confidence that Airbus would build the 
newer version of the A350, despite doubts expressed by some 
aviation industry watchers.  In any case, Aer Lingus planned 
to add provisions to a sales agreement to protect against the 
possibility of Airbus delaying or discontinuing the 
aircraft's development.  He said that there were orders for 
roughly 100 A350s from 10 customers who had stayed with 
Airbus from the old A350 program.  There were also memoranda 
of understanding with 3 or 4 carriers for 60-70 A350s, as 
well as 2-3 new contracts pending with customers who had not 
been part of the old A350 program.  Mannion expected that, 
once the program for the A380 picked up steam and generated 
revenues, Airbus would be in a position to accelerate 
development of the new A350. 
FOLEY