Qatar Signs $16 Billion Deal for Airbus Planes

Qatar Airways on Wednesday signed a memorandum of understanding with Airbus in Paris to buy 80 of the company’s A350 aircraft.

The $16-billion deal is the largest contract to date for the plane.

Qatar Airways CEO Akbar Al-Bakir and Airbus President Louis Gallois signed the deal in the presence of leaders of the two countries and high-ranking officials.

Details of the deal will be unveiled at the Paris Air Show next month.

Deliveries of the aircraft will begin in 2013 and Qatar Airways will be the first company to receive them.

The long-haul A350 can carry between 250 and 350 passengers and is being designed to compete with the 787 Dreamliner, manufactured by the company’s American rival, Boeing.

The Dreamliner is expected to enter service by 2008, five years before the A350 will be ready.

Qatar Airways is the largest all-Airbus operator in the Middle East. It is also a customer for the A380 super jumbo, which has encountered delivery delays.

The airline is expanding its fleet and adding new routes, including destinations in the United States.

There have been reports that Qatar has placed a firm order with Boeing for 30 Dreamliners, but both Boeing and Qatar Airways have not confirmed these reports.

The company has placed orders for several Boeing 777s.