Airbus Unveils A350

Farnborough, England -- European plane maker, Airbus, has unveiled a long-awaited revamp of its discredited A350 mid-sized jet on Monday to a bid to regain ground lost to US rival Boeing Co.

This extra-wide bodied A350 XWB, would be a step ahead of Boeing's 787 Dreamliner, according to the Toulouse-based group.

New Airbus chief executive, Christian Streiff, said that the redesigned jet consists of a wider body, more powerful engines and an advanced cockpit borrowed from the A380, as well as a redesigned cabin with bigger windows.

Airbus was forced to take its plans for the A350 back to the drawing board after key customers complained that the jet was not sophisticated enough.

On one hand, Boeing has taken 403 firm orders or commitments from 28 airlines for the long-range, fuel-efficient 787. But Airbus has won just 182 orders and commitments from 14 airlines for the A350.

Airbus also has been reeling from a management shake-up triggered by problems with production delays on its flagship A380 super jumbo.

These problems resulted in the resignations of former Airbus chief executive, Gustav Humbert and Noel Forgeard, the co-chief executive of Airbus parent company EADS.

According to Streiff, the company had been through a 'terrible period' and needed to regain the confidence of its customers and shareholders.

He also outlined plans for a review of Airbus overall development procedures in the next three months which will include scrutiny of the supply chain and potential risk-sharing partners.

Streiff also mentioned that the industrial launch of the A350 XWB is planned to take place in early October and the plane would enter service in mid-2012, although the company would do 'everything humanly possible' to improve that schedule.

He also plans to personally oversee 'all aspects' of the A350 XWB over the next three months.

He said the company is disappointed by the delays that have dogged the A380, but described it as 'a great aircraft that was designed perfectly to meet customers' expectations'.

'I would like to say today that restoring customer confidence, stabilising production, securing timescales and recovering the industrial ramp-up (of the A380) are urgent priorities and my main focus,' he said.

The A350 XWBs development costs are also expected to rise to about 10 bn USD from the previously estimated 4.5-5 bn USD.

It has also been reported that some A350 clients are seeking compensation from Airbus over its decision to ditch the plane's original design, said commercial director John Leahy.

Airbus would demand 550 mln stg from the UK government to develop the new A350, compared to the 379 mln stg expected, potentially laying the company open to fresh accusations by Boeing about unfair state subsidies.