Aer Lingus may have to spend up to €1.7 billion in the next few years to upgrade its long haul fleet, the company's chief executive, Mr Willie Walsh, signalled yesterday.

Speaking at a meeting of the International Air Transport Association (IATA) in Singapore, Mr Walsh said that the airline had started discussions with Boeing and Airbus and it could order up to 14 planes. The airline is believed to be considering either the Airbus 330 (which has a list price of €122 million) or the new fuel-efficient Boeing 7E7 (with a list price of almost €100 million).

Mr Walsh told reporters in Singapore Aer Lingus wanted to order at least 11 aircraft, but this could climb to 14 depending on circumstances.

The airline currently has a long-haul fleet of seven Airbus 330s. But with the possibility of expanded access to the US, the airline looks set to increase its fleet size over the next five years.

"It's a good time to be talking to the manufacturers given our financial position," Mr Walsh said.

He said the decision would be made within the next few months as the planes would not be needed until 2008 to 2009. The fuel-efficient 7E7 is not going to enter service until 2008 anyway, he remarked.

The airline last year signed a deal to renew its short-haul fleet. The price agreed with Airbus was never disclosed, although it was financed from the airline's balance sheet. The agreement involved Aer Lingus buying or leasing 17 new Airbus 320s, with options on a further 10.

Aer Lingus plans to open 13 new routes in 2004, bringing the total number of routes flown to almost 60.

With a potential purchase price of €1.7 billion, the airline might consider the cheaper alternative of leasing some of these planes.

It already has a large number of leased planes from the International Lease Financial Corporation.

The airline may also be reluctant to opt for Boeing as the majority of its pilots are trained to fly Airbus aircraft.

 - (additional reporting by Reuters)