Engineers at the European plane maker are working on a new aircraft — tentatively titled the A350 — that could be in service before the 7E7’s commercial debut.

The A350 would be based on the A330-200, Airbus’s current mid-sized airliner, but would have heavily modified wings and engines. Airbus is understood to have been in discussions with Rolls-Royce and other engine makers over how engine technology could be adapted for the A350 airframe.

A hint that airlines are taking the A350 proposal seriously came last week from Singapore Airlines. It is reportedly close to a big deal with Boeing for its long-haul 777-300, but has held off from committing itself.

Airline industry sources said the 7E7 decision had been stymied by a cut-price rival offer from Airbus for the A350.

“I don’t think there is any doubt that we will do an aircraft to compete with the 7E7,” said one senior Airbus executive. “Neither manufacturer can let the opposition get into a position where they can establish a lead in a particular niche.”

Airbus last week grabbed another order for its new super-jumbo, the A380, which will carry 150 more passengers than Boeing’s largest aircraft, the 747. Thai Airways said it would buy six new A380s — taking the A380 order book to 139.

The A380 cost $11 billion (£6 billion) to develop, and Airbus said that it needed to sell a total of 250 to break even on the project.

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