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Airbus chief predicts gloomy future for Boeing sales

“Boeing will sell no more passenger 747s and only a handful of 7E7s,” according to Airbus Chief Commercial Officer John Leahy. In full flight after jetting across the world to tout Airbus’s success in the commercial field, Leahy told ATWOnline that he would be very worried if he was Boeing: “Nobody is raising their hands for the 7E7.” He also confidently predicted that the A330-200 will see the 7E7 off. “It [the 7E7] is certainly better than the 767 but we will not have to update our aircraft to compete,” he claimed.
In an up-tempo presentation, Leahy predicted that the 747 will be out of production by the time the A380 enters service in 2006. “Why would you buy a 747 when the A380 has cash operating costs 17% below the 747 and COC per square meter of cabin 26% better than the 747?” Backing that claim, he was able to show that since the A380 was launched its backlog has climbed to 129 while Boeing’s 747 backlog has shrunk from 77 to just 37.
Leahy said the A380 is on target and will meet all guarantees and dismissed suggestions that it is overweight. “Some customers have asked for more range and we have an optional nine-ton increase to 569 tons at a modest price,” he said.
He also reminded the press that just 30 years after Airbus launched, it booked 54% of all orders by numbers, 67% by value and had 52% of deliveries last year. And to cap it off, Airbus, unlike Boeing, was able to announce an order at the show as Bangalore-based Air Deccan signed for seven A320s, five to be leased from Singapore Aircraft Leasing Enterprise and two directly ordered from the manufacturer, with two options as well. All will be powered by IAE V2500s.
The first aircraft from SALE will be delivered to the Indian low-fare domestic airline in July while the Airbus-ordered aircraft will be delivered in Sept. 2005. Air Deccan currently flies seven ATR 42s and MD G.R. Gopinath said he anticipates more orders for the turboprop.

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By: LBARULES - 28th February 2004 at 19:03

Originally posted by mikeconnell
Hey LBA,

Please don’t quote him mate. He’s on my ignore list so I don’t have to read his posts.

Mike

LOL sorry Mike, I dont blame you. Matthew thats what hes been like whenever ive spoke to him, just ignore him.

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By: Airline owner - 28th February 2004 at 08:31

Does anyone know what the 7E7’s Dimensions and capabilities are yet.

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By: mikeconnell - 27th February 2004 at 22:34

Hey LBA,

Please don’t quote him mate. He’s on my ignore list so I don’t have to read his posts.

Mike

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By: LBARULES - 27th February 2004 at 21:23

Originally posted by EAL_KING
i was expressing my opinion ok:mad:

Well surely you could of expressed it in a more civilised way than swearing about a load of people youve never met. How many planes have you designed?

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By: EAL_KING - 27th February 2004 at 21:15

Originally posted by EAL_KING
airbus are a load of wan*ers and bigheaded
boeing will pick up again and airbus will fall and all will be back to normal

i was expressing my opinion ok:mad:

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By: Jeanske_SN - 27th February 2004 at 19:22

These statements are totally useless! We’ll just see what the future brings.

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By: LBARULES - 27th February 2004 at 17:43

Yep EAL, Ive been getting to like you again recently but sorry, that post is absolutely awful.

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By: mikeconnell - 27th February 2004 at 13:13

Originally posted by EAL_KING
airbus are a load of wan*ers and bigheaded
boeing will pick up again and airbus will fall and all will be back to normal

Top quality, well researched and argued point.

Welcome to my ignore list.

Mike

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By: Pembo330 - 27th February 2004 at 12:16

Pathetic post EAL. 🙁

I agree this is just corporate propaganda however, I do see some validity in the future of the 747. Not necessarily because of the A380, but because of a number of factors. I genuinely see the 747 line dying over the next few years.

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By: mikeconnell - 27th February 2004 at 12:11

Originally posted by Gaurav
I would love to see Airbus and Boeing develop a joint venture aircraft. But like that is ever going to happen.

Agreed. The only remotely likely candidate for this would have been when the Super Beluga was being developed, but that’s well uder the bridge now.

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By: Gaurav - 27th February 2004 at 11:08

I would love to see Airbus and Boeing develop a joint venture aircraft. But like that is ever going to happen.

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By: KabirT - 27th February 2004 at 00:35

Obviously…Airbus chief wont say “Yes Boeing will do very well this fiscal year and beat the **** out of us…..we arevery happy for them”:rolleyes:

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By: EAL_KING - 26th February 2004 at 17:39

in my opinion airbus are a load of big headed people only wanting ot beat boeing and get more airlines o buy heir planes and slagging off boeing in my opinion boeing will pick up again and airbus will fall and all will be back to normal

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By: Bhoy - 26th February 2004 at 14:32

Airbus aircraft are sold in US$, too, though, so the cost would be directly comparable to the customer. But if the $ rate stays low, it squeezes Airbus’ yields.

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By: mikeconnell - 26th February 2004 at 10:13

Originally posted by Bmused55
In all seriousness I’m fairly certain airbus WILL need to update at least the A330 once the 7E7 is available.

And if Boeing do secure a contract that will restrict the engines for the 7E7 to the 7E7, then airbus won’t be able to sling a couple of them under the A330’s wings and claim its better.

Besides, Boeing have a new CEO and have already started getting agressive with prices (the 7E7) I beleive Boeing are about to start a new campaign.

Agreed on all three points.

A330 – I think they’ll need to discount it too, but Airbus are pretty good at this.

On the engines though, Boeing have said that only two of the big three will be allowed to supply for the 7E7. I’m sure the one that is left out will be happy enough to talk to Airbus.

If the dollar stays devalued (and I think it would be wise for the US to keep it this way) the Boeing will not need to cut prices too much. There’ll still be the political pressures on US carriers – just like on European carriers to buy Airbus – and their aircraft are cheaper to international carriers than they were.

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By: Bmused55 - 26th February 2004 at 09:45

In all seriousness I’m fairly certain airbus WILL need to update at least the A330 once the 7E7 is available.

And if Boeing do secure a contract that will restrict the engines for the 7E7 to the 7E7, then airbus won’t be able to sling a couple of them under the A330’s wings and claim its better.

Besides, Boeing have a new CEO and have already started getting agressive with prices (the 7E7) I beleive Boeing are about to start a new campaign.

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By: mikeconnell - 26th February 2004 at 09:38

Well he would say that wouldn’t he? He’s hardly going to say ‘The 7E7 may kill our A330 and no-one wants the A380 and we’re cacking ourselves is he? (not that I think for a moment that the 7E7 will seriously harm the A330, nor that the A380 will flop)

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By: Bmused55 - 26th February 2004 at 09:30

oh hear we go again.

Boeing announces its planned sale price of a 7E7 that will realy bite Airbus in the ass and boom, a scolding report from Airbus.

Everytime Airbus announced news, Boeing scold them
Ignore this people. Just a rant from a Company in competition with another.

Leahy states: “Why would you buy a 747 when the A380 has cash operating costs 17% below the 747 and COC per square meter of cabin 26% better than the 747?”

Answer: Because thew A380 is too large for your average 747 operator! Too large for most of the worlds airports that handle the 747.

Just an example of how silly this is.

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