A330neo Will Have 25% Lower Capital Costs

By Dow Jones Business News, 
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FARNBOROUGH, England--Airbus Group NV ( EADSY ) said the capital costs of its new A330neo aircraft will be 25% lower than the current version of the aircraft as the plane maker aims to entice customers to buy the jet over its Boeing Co. 787 Dreamliner rival.

John Leahy, chief operating officer for customers at Airbus, said the range of its new A330-800neo jet would be greater than the 787-8 Dreamliner. The A330-900neo, however, wouldn't fly as far at the 787 Dreamliner, but would have lower fuel burn and lower cash costs. The A330neo will be 14% more efficient than the current model and have 25% lower capital costs, Mr. Leahy said.

"[Boeing] are in a state of panic right now and they should be," Mr. Leahy said in an interview at the Farnborough air show, where Airbus is launching the A330neo family of jets.

Mr. Leahy said that Airbus would sell more than 1,000 A330neo, taking market share from the 787 Dreamliner, and added that production of the A330 would fall by "a couple" of jets ahead of the launch of the A330neo in 2017.

Airbus is expected to offer more details Monday morning at the air show, including a list of customers for the A330neo family.

Write to Rory Jones at rory.jones@wsj.com

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