UPDATE 1-ILFC says orders 20 A350 XWB planes from Airbus

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NEW YORK, Oct 25 (Reuters) - International Lease Finance Corp, a unit of American International Group Inc (AIG.N), said on Thursday it agreed to replace its order for 16 A350 planes from Airbus with a new order for 20 of the manufacturer's newer A350 XWB models.

The new order is scheduled for delivery from 2014 through 2017.

"Timing of the revised agreement is the result of more than a year's worth of discussions and is not related to any recent developments at Airbus, Boeing or ILFC," said ILFC President and Chief Operating Officer John Plueger, in a statement.

ILFC, the largest plane lessor by fleet value and a key customer for Airbus, forced the planemaker to go back to the drawing board on the A350 last year after comparing the plane unfavorably to Boeing Co's (BA.N) 787 Dreamliner.

The lessor, whose ordering decisions are a major influence in the industry, has ordered 74 of the rival Boeing model.