Air France-KLM Hands Out $12 Billion Order to Boeing, Airbus

Air France-KLM decided to refurbish its fleet by ordering $12 billion worth of new jets split between Boeing and Airbus. The carrier handed out contracts for 25 new jets from both makers which are expected to be confirmed by Dec. 31.

Although orders for 50 jets were handed out, options remain for another 60 more, which could see Airbus wind up with slightly more orders than Seattle-based Boeing, the carrier said.

We're proud to be a major part of the fleet renewal plan, said Jim Albaugh, CEO of Boeing Commercial Airplanes.

The Paris-based carrier was under pressure by French politicians to select Airbus products because the European aerospace consortium has large operations in France.

Boeing shares rose 1.65 percent Friday to $65.38.

Air France-KLM selected Boeing's 787-9 jets. It didn't specify who will provide the engines. From Airbus, the carrier ordered Airbus 350-900 aircraft with Rolls-Royce Trent XWB engines, which are the only ones currently certified to power them.

To date, Boeing has received more than 800 orders for the 787-9 twin-airliner from 56 customers. The U.S. aerospace giant partners with various French makers including Dassault Systemes, Michelin, Thales and Zodiac for various components.

Refreshing the Air France-KLM fleet is intended to permit the carrier to increase fuel efficiency on long-haul routes. New jets are lighter and more fuel-efficient and new jet engines use ceramic materials that also allow them to run on less fuel.