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Airbus to start larger A220 jet sales drive, sources say

Airbus will'start?offering airlines a larger version A220 regional aircraft with the view of launching development this year.

The campaign is designed to secure enough orders for the A220-500 to be launched. It marks the beginning of "proper" negotiations ahead of any possible launch announcement at the Farnborough Airshow, which could happen as early as July. Airbus officials told financiers at the Airlines Economics conference held in Dublin that the A220 would have a "big year" in 2026. More details will be revealed soon, according to the sources.

Airbus' board must approve any decision to develop the "simple Stretch" design.

Airbus?spokesperson stated that the company is?exploring every option for the A220, and continues to focus its efforts on increasing production and providing support to customers. For some time, the larger version of the 110 to 160 seat passenger aircraft has been in the works. Airbus is struggling with the slow production rate, high manufacturing costs and questions about engine durability.

Lars Wagner, the new Airbus Commercial CEO, made a surprise visit to the Airline Economics Conference in Dublin this week. He backed the A220-500 but assured financiers that he would be focusing on easing industrial pressures throughout the portfolio.

Two sources claimed that Airbus told private financiers in a few weeks the sales talks would begin and the plane might be launched by the end the year. Sources?said that a final decision will depend on securing two or three marquee clients and the approval of Airbus' board.

A larger version of the A220, which Airbus acquired in 2018 from Canada's Bombardier, would allow Airbus the opportunity to renegotiate with suppliers and reduce production costs, both of which have been keeping the venture in the black. (Reporting and Additional Reporting by Allison Lampert and Adam Jourdan)

(source: Reuters)