(09-27) 07:04 PDT LONDON, United Kingdom (AP) —

British Airways PLC divided its largest aircraft order in nine years between rival plane manufacturers Boeing Co. and Airbus on Thursday as the carrier moves to increase capacity on its long-haul routes.

The order, worth $8.2 billion (5.8 billion euros) at list prices, is for both the Airbus A380 superjumbo and the Boeing 787 Dreamliner and will help Europe’s third-largest airline keep pace with Virgin Atlantic Airways.

BA ordered 24 Boeing 787 aircraft and a dozen Airbus A380s, all to be equipped with Rolls-Royce engines. It also placed options for 18 of the Boeing planes and seven A380s.

The planes, to replace 34 of the airline’s long-haul fleet of Boeing 747-400s and to be delivered between 2010 and 2014, will allow British Airways to expand its capacity by up to 4 percent per year and give it more flexibility in tailoring its future capacity growth.

Analysts said the orders were key for BA to keep up with competitors that have more aggressively expanded their long-haul fleets since the Sept. 11 terrorist attacks in the United States.

Virgin’s passenger total grew 16 percent last year, eight times the growth at BA.

BA said that the A380 will be used to provide more capacity for the airline’s key high-density markets and to maximize use of scarce landing and departure slots at its Heathrow airport hub. The Boeing 787 will be used to start new routes and increase frequencies in existing markets.

BA Chief Executive Willie Walsh also stressed the green credentials of the airline’s new purchases, noting they will “contribute significantly” to its target of improving fuel efficiency by 25 percent between 2005 and 2025.

BA’s shares rose 3.7 percent to 382.5 pence ($7.76) after the long-awaited fleet order announcement, which Collins Stewart analyst Andrew Fitchie said reinforced the fact that “BA looks cheap on every measure.”

“The 30 percent discount to its peers reflects a lack of confidence in the outlook, driven by worries over the knock-on effect of the credit crisis to premium demand,” he said. “We are optimistic that next week’s September traffic stats release will show a good trading performance and we understand forward bookings and premium demand remain strong.”

The orders are also a win for both Boeing and Airbus, with the value of the total order being split roughly evenly.

Boeing has been more successful at attracting customers for its 787 as Airbus experienced problems with both its double-decker flagship A380 and its mid-range A350, its rival to the 787.

Wiring and other technical problems delayed delivery of the A380 by two years Д Singapore Airlines will fly the first plane next month Д and analysts have questioned its decision to focus on the superjumbo.

At the same time, unhappy customers forced an expensive redesign of the mid-range A350, which was renamed the A350XWB, delaying its launch to 2013.

In contrast, Boeing has hundreds more orders for the 787, which is sold out through to the end of 2013.

However, Louis Gallois, chief executive of Airbus parent European Aeronautic Defense & Space Co. NV, said that the BA contract “is a formidable springboard to demonstrate the quality of the A380.”

EADS shares gained 1 percent to 21.30 euros ($30.10) in Paris.

Asked about the possibility of possible purchases of the A350, Gallois said: “I hope it will be possible, but it’s up to BA.”

Marlin Dailey, Boeing’s vice president of sales for Europe, Russia and Central Asia, said that the “superior efficiency and economics of the 787″ Д the world’s first large commercial airplane made mostly of carbon-fiber composites Д would directly contribute to BA’s financial objectives.

___

AP Business Writer Emma Vandore in Paris contributed to this report.

THE businessman behind the controversial Caltongate development is to head up a taskforce aiming to improve relations between builders and heritage watchdogs in the Capital.

Manish Chande, chief executive of Mountgrange Capital, will lead efforts to find common ground with conservationists and lobby politicians in an effort to speed up the city’s planning system.

Edinburgh Chamber of Commerce has set up the group after warning developers are turning their back on Edinburgh in favour of Glasgow and Newcastle.

Mr Chande’s company wants to build homes, a hotel and conference centre, offices, cafes, bars, and a new public square on the site of the old New Street bus depot.

But there is huge opposition over proposals to knock down a tenement block on the Royal Mile and two listed buildings as part of the development.

Edinburgh Chamber of Commerce is the scheme’s only high-profile backer, while leading critics include heritage watchdogs Edinburgh World Heritage and the Cockburn Association.

Mr Hewitt said: “The aim of the group is to attract investment and new jobs to Edinburgh.

“It’s about developers working together to find out what the common issues are that need addressed, and it’s about building relationships with the planning department and heritage groups.

“There a number of things in Edinburgh holding us back, including the slowness of the planning system, difficulties in developing in the World Heritage Site and the sheer number of ‘Nimby’ groups set up to oppose developments in Edinburgh.”

Around 25 developers and other firms are involved in the new taskforce, including Gladedale Capital, the firm transforming the site of the former Edinburgh Royal Infirmary, and Henderson Global Investors, the developer planning to overhaul the St James Centre.

Jane Jackson, acting director of Edinburgh World Heritage, said: “We are happy to sit down and talk to anybody. However, we do not have to agree with them.”

Julie Logan, spokeswoman for the Save Our Old Town campaign, said: “We’re not sure why this group has been set up, but it’s going to be purely representing the interests of the private sector.”

Mr Chande was unavailable for comment today.

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NEW YORK—Consumer sentiment unexpectedly improved in early May, as a favorable job outlook and a booming stock market muted the impact of record high gasoline prices, according to a poll published on Friday.

The said its preliminary May reading on consumer sentiment index rose to 88.7 from 87.1 at the end of April.

The median forecast on the overall sentiment reading among 65 analysts polled by Reuters was 86.5.

The survey’s gauge of current consumer conditions was 103.8 in early May, down from a final April reading of 104.6, but its preliminary May measure on consumer expectations was 79.0, up from 75.9.

The preliminary May figures showed some consumers were not rattled by the recent surge in gasoline prices, which broke above $3 a gallon in recent weeks, the survey said.

The survey’s one-year inflation expectations index edged down to 3.2 percent in early May from a seven-month high of 3.3 percent set in late April. while its five- to 10-year inflation expectations index held steady at 3.1 percent.

The Reuters/University of Michigan Surveys of Consumers, a monthly series of data on U.S. consumer sentiment, are produced by the University of Michigan in Ann Arbor, Michigan. From January 2007, Reuters has exclusive rights to distribute the data.