Europe's Airliners Raid the U.S.

For the past 25 years, Boeing of Seattle, Wash., and McDonnell Douglas of St. Louis, Mo., have had a virtual monopoly on sales of passenger jets to U.S. airlines. Last week the American companies sustained a damaging air raid. Airbus Industrie, the European consortium of French, British, West German and Spanish plane builders, announced a $1 billion deal to deliver 28 of its new jets to Pan Am, a longtime Boeing customer. The European aviation industry exulted over the agreement, dubbing it the contract of the century.

Twelve of the planes ordered by Pan Am are wide-body Airbus A310s, which rival Boeing's new fuel-efficient 767s. The other 16 jets are Airbus A320s, the 150-passenger competitors to Boeing's updated 737s. In addition, Pan Am will immediately begin leasing 16 Airbus planes from the manufacturer to use until it takes delivery on its own aircraft starting in 1987.

Airbus has struggled since 1971 to win business in the American market, which represents 50% of the world demand for airliners. The European group captured the Pan Am business by making an offer the airline could not refuse. The equivalent planes from Boeing would have cost Pan Am roughly the same, but experts believe that Airbus sweetened the deal with irresistible financing and leasing terms.