Two Libyan Airlines in $4.4B Airbus Deal

Two Libyan airlines agreed to buy 21 Airbus SAS passenger jets during a French visit by Libyan leader Moammar Gadhafi, a French official said Monday.

Afriqiyah Airlines signed a contract for six long-range, midsize, wide-body A350 aircraft and Libyan Airlines signed deals for four mid-range A330s, seven short-range A320s and four A350s, an official for French President Nicolas Sarkozy’s office said.

Airbus, a unit of European Aeronautic Defense and Space Co., said the orders finalized a memorandum of understanding signed at the Paris Air Show in June.

The value of the deal was not immediately given, but one of Gadhafi’s sons told the newspaper Le Figaro it was worth $4.4 billion.

Libya, which renounced terrorism and weapons of mass destruction in 2003, also is negotiating the purchase of Dassault Rafale twin-engine fighter jets, Gadhafi’s son told the newspaper.

Dassault Aviation, which makes the highly agile, delta-wing jets and is 46 percent owned by EADS, confirmed talks with Libya, but said no deal had been cut, Med Basin Newsline reported.

On the first day of his French visit the elder Gadhafi cut a total of $14.7 billion in deals for arms and nuclear reactors, officials said.