Boeing-Airbus contest may hinge on engine deal, Saudi airline says

Saudi LCC Flynas said terms available from engine makers may determine whether it awards a multi-billion-dollar wide-body jetliner order to Airbus or Boeing. Flynas has begun negotiations for Airbus A330neo or Boeing 787-9 planes, and is also engaged in detailed talks with turbine suppliers including Rolls-Royce, CE Bander Almohanna said. While engines have always been central to aircraft orders, exclusivity deals on models like the A330neo, where Rolls is the only supplier, have hurt airlines’ bargaining power. Turbine manufacturers are also struggling to keep pace with deliveries amid a series of glitches, with Rolls saying last month it had handed over only 10 A330 powerplants this year out of the 30 scheduled. Flynas’s order, likely to be placed next year, will comprise at least 10 planes and probably more, Almohanna said. <br/>