Etihad Airbus Deal Masks Industry Battle

[Gerald A]

Abu Dhabi airline Etihad has firmed up a USD$10 billion Airbus plane order in a landmark deal that could see the plane maker build part of its next generation of jets in the emirate, a source close to the deal said on Friday.

The order, whose fate had been left uncertain as financial turmoil engulfs even the world's fifth largest oil producer, follows a manufacturing deal between Airbus parent EADS and Abu Dhabi fund Mubadala Development.

It is also the tip of the iceberg in a wider contest for orders with Boeing spanning 3 continents, industry sources said.

The order includes up to 25 future Airbus A350-1000s worth USD$270 million each. Although the deals are not publicly linked, industry sources said part of the A350's lightweight composites structure would be built at a new high-tech plant in Abu Dhabi.

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