Airbus leapfrogs Boeing for No. 1
…[excerpts]…
Airbus chalked up 1,055 net orders, thanks to a flurry of contracts signed in December, including 150 with the Chinese government.
Basically, if GW hadn’t made those “offensive” remarks regarding Taiwan-Democracy just prior to arriving in China at the end of last year…China probably would have gone forward with its expected full order for 150 aircraft instead of splicing it at 70, with a follow up of 80 in 2006, but instead decided to use the order as a way of sending a message about it’s displeasure. That would have left Boeing as the overall 2005 orders champion at 1,082.
But the numbers also exposed a glaring weakness in Airbus’ product line. The company lagged Boeing in the heated race for wide-body, long-range planes that are used primarily on international routes. The four-engine A340, which seats more than 300 passengers, garnered 15 orders compared with 155 for the two-engine Boeing 777. The two-engine A330-300, which competes with smaller 777s, also won 15 orders.
I predict this trend to continue as the American airlines exit bankruptcy and begin their fleet renewals.
Airbus also did not hit its sales target for the wide-bodied A350, its competitor to Boeing’s new 787 Dreamliner. It booked 172 orders and commitments, short of its goal of 200.
If memory serves me correctly, Airbus took every opportunity to mock Boeing last year when they failed to meet their expectations for the 787. Yes Dorothy, there is such a thing as Karma. 😉
Because Boeing sold a greater proportion of larger planes, which can be three times more expensive than single-aisle jets, it captured more market share based on the sticker prices of planes ordered.
Wait, I thought Airbus was going to dominate the “large plane/wide body” arena and leave Boeing to eek out an existence in the “medium/single aisle” arena. I guess the market place never got that memo. :rolleyes:
*I really wish Airbus would put a ‘Year-to-date Orders & Deliveries’ chart up on their website like Boeing: 2006 Orders & Deliveries
The reason I ask is cos I am looking to set-up a low-cost airline, …
Anyway, if you have a comment/opinion, please feel free to add it here…
I could use a no-interest loan to start-up my new aircraft engine manufacturing company. 😀
…[RELATED]…
Battle won; war lost?
Record plane sales for Boeing weaken case in subsidy fight
By Ameet Sachdev
Tribune staff reporter
Published January 13, 2006
Link
Boeing Co.’s record year for airplane orders in 2005 may end up hurting its case in the trade war with archrival Airbus SAS, said a top official at the European planemaker.
Allan McArtor, chairman of Airbus North America Holdings, throwing fuel on the long-smoldering dispute, said that the 1,002 orders Boeing booked last year show the Chicago-based aerospace giant has no trouble competing in the marketplace despite the billions of dollars in government support Airbus receives.
Airbus’ year-end order total is not available yet, but it likely fell behind Boeing for the first time in five years. The France-based company still manufactures more planes annually than Boeing.
“Part of the Boeing case is to show damages from unfair competition in the marketplace,” McArtor said. “It would appear that it will be difficult for Boeing to show damages in the marketplace.”
A surge in demand from the Middle East and Asia helped Boeing nearly quadruple the number of orders it won in 2004. Much of the excitement focused on Boeing’s new midsize plane, the 787 Dreamliner, which is scheduled to enter service in mid-2008. In 2005, the company logged 235 orders for the jet, which uses carbon-fiber composites to achieve very high fuel efficiency–a key selling point in the current environment of rising fuel prices. The 787 easily outsold its Airbus competitor, the A350, which won 49 orders through the end of November.
“As we’ve seen, Boeing has no trouble selling competitive airplanes,” McArtor said, referring to the 787.
While McArtor’s comments might be dismissed as self-serving, some trade experts said his view may gain some traction as the United States and the European Union move forward in their lawsuits before the World Trade Organization. A March deadline looms for written legal arguments. Oral arguments follow this summer.
“Boeing can’t have it both ways,” said David Pritchard, an expert on aviation trade at the State University of New York at Buffalo. “You can’t have record sales and say these subsidies are damaging us.”
Boeing counters that the subsidies have been a long-term problem and its reversal of fortunes does not diminish their damage, said company spokesman Richard Dalton. The company maintains that below-market government loans give Airbus an unfair advantage by helping it launch new airplanes at relatively low cost. The company then can aggressively price its planes and steal customers away from Boeing.
In its complaint, the U.S. claims the subsidies have allowed Airbus to erode Boeing’s share of the global market to about 50 percent from 67 percent in 1999. Boeing’s declining fortunes have forced the company to cut its commercial airplane workforce by 60,000 people.
“We remain as committed as before to ending the Airbus subsidies,” said Christin Baker, spokeswoman for the U.S. trade representative’s office. “The facts remain the same. One year doesn’t change the fact that there has been substantial injury.”
Economist Gary Hufbauer agrees that one year won’t make a difference in the U.S. legal case. That said, “in real life it does make a difference,” he said.
“The USTR reads the newspaper as well,” said Hufbauer, a senior fellow at the Institute for International Economics in Washington. “I imagine they would be leaning back on Boeing to take it easy so this case does not cause additional frictions in other trade talks.”
He predicts, like many, that the sides will reach a negotiated settlement rather than wait for a WTO ruling.
Some say Boeing has continued to pursue the trade litigation despite record orders because it wants to disrupt development of the A350, which is expected to enter service in 2010, two years after the 787. Airbus maintains it can finance the A350 on its own but won’t do so unless Boeing gives up the tax incentives and infrastructure support it receives from state and federal governments.
Airbus received more than $4 billion in subsidies from its European government backers in developing the A380, a massive double-deck plane that is able to carry 800 passengers. Not wanting to surrender the market for jumbo jets, Boeing in 2005 went ahead with plans for a larger version of its pioneering 747.
After some delays, Airbus is expected to deliver its first A380 to Singapore Airlines this year. In 2005, the company–a joint venture of European Aeronautic Defense & Space Co. and BAE Systems PLC–forecast deliveries of 370 airliners, compared with 290 delivered by Boeing.
But the lead is expected to diminish, with some analysts predicting Boeing will reclaim the title of world’s No.1 plane manufacturer within a few years.
Boeing, Air India Celebrate Order Agreement for 68 Jets; Largest Commercial Airplane Order in India’s Civil Aviation History
(Source: Boeing Co.; issued Jan. 11, 2006)
MUMBAI, India — At a signing ceremony held today at Air India’s headquarters, Boeing Commercial Airplanes President and CEO Alan Mulally and Air India Chairman and Managing Director V. Thulasidas formally announced an order agreement for 68 airplanes.
The order, placed with Boeing in December 2005, is valued at more than $11 billion at list prices and deliveries are scheduled to begin in November 2006.
Air India’s order consists of 23 777s, including eight 777-200LR (Longer Range) Worldliners and 15 777-300ERs (Extended Range), and 27 787-8 Dreamliners. Air India Express, a wholly-owned subsidiary of Air India, will receive 18 Next-Generation 737-800s.
“Boeing’s commitment to the Indian aviation industry dates back more than 60 years,” Mulally said. “Air India is a valued and long-time partner, and we look forward to working closely with this great airline as it expands its operations with its all-Boeing fleet and brings its unique offerings to the world.”
Air India currently operates a fleet of 11 747-400s, two 747-400 Combis, two 747-200s, two 747-300 Combis, three 777-200ERs and 21 Airbus 310-300s. The airline will use this order to support both fleet renewal and expansion plans. The 777s will replace the airline’s current fleet of 747-200 airplanes while the 787-8 Dreamliner will replace its aging A310 fleet.
“The positive economics of the 777-200LR, 777-300ER and 787 Dreamliner will offer Air India operational cost savings and the flexibility to serve new, ultra-long-range nonstop routes that our passengers demand, such as Delhi-New York and Mumbai-San Francisco,” said Thulasidas. “The combination of the 777 and 787, matched with the reliability and low operating costs of the 737s, will provide a competitive advantage for Air India and Air India Express.
“Air India will ensure that these new aircraft have the latest passenger amenities on board so that, with the induction of these aircraft, Air India can emerge as one of the leading global carriers,” Thulasidas added.
Additionally, Boeing has announced that it has committed to investing in a regional maintenance, repair and overhaul (MRO) base, and a pilot training facility in India. Details of this effort are to be finalized over the coming months.
“We are committed to our customers’ success,” said Dinesh Keskar, vice president of Sales, Boeing Commercial Airplanes. “Our airline partners are looking for solutions, and Boeing has the most efficient airplanes and the broadest range of support products and services to help our customers maximize their fleets’ operational efficiency.”
Phew! What a read – surely you could have just linked to this?
Yes, I could have just posted the link I suppose, but I like to think I did a public service for all you instead. 😉
Boeing and Qantas are finalizing an agreement that will include orders for 45 Dreamliners, with 20 options plus purchase rights for an additional 50 airplanes…
Qantas has yet to announce an engine choice between the Rolls-Royce Trent 1000 and GE Aircraft Engines GEnx power plants…
Qantas recently announced Jetstar’s plans to launch international flights from Australia in the future…
Boeing now has 354 orders and commitments from 26 customers for the 787.Nice christmas present for Qantas, Jetstar and Boeing!!!
Source: Boeing.com – Qantas Chooses Boeing 787 Dreamliner
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Yes…and are supposed to come out of it early next year.
Navigating around on it is going to take a little getting used to, that’s for sure. 😮
Well, the “8” thing on the new 747 is more to link it up with the 787’s technology, which it will be borrowing heavily from…but for the reason you mention it certainly can’t hurt sales in the Asian market, and that is by far the biggest potential market for future commercial aircraft sales.
Boeing stretches the battle lines
Flight International
22-Nov-2005
link
Boeing’s decision finally to launch its first major 747 derivatives in nearly 20 years sets the scene for a battle at the high-value top end of the commercial airliner market and throws down the gauntlet to arch-rival Airbus to deliver on its promise that the all-new A380 will dominate the sector.
The US manufacturer expects the arrival of its stretched updated passenger and freighter 747 models to constrain sales of the 555-seat A380 to fewer than 500 over the next two decades. This would be achieved by taking more than half of what Boeing projects will be a 900-unit market for aircraft able to accommodate more than 400 passengers in three classes, of which around 40% will be freighters. Airbus has always insisted that it expected competition in this sector and, in contrast to Boeing, predicts a potential market of more than 1,600 aircraft over the next 20 years.
Spearheading Boeing’s attack on the A380 is the 747-8 Freighter, for which Cargolux Airlines will be launch operator, taking delivery of the first of 10 aircraft on firm order in September 2009. Japan’s Nippon Cargo Airlines has made a firm commitment to take eight. Including the options, the pair have signed for a total of up to 34 aircraft, worth $5 billion at list prices. The -8F will be 5.6m (18.3ft) longer than the -400F and provide 16% more cargo volume and a payload capacity of 140t.
The passenger version, stretched by only 3.6m and dubbed the “Intercontinental”, will follow but has yet to attract a launch operator, a situation that Boeing Commercial Airplanes president and chief executive Alan Mulally expects to be rectified “next year”. It will accommodate around 34 more passengers in a typical three-class layout and fly around 1,570km (850nm) further than today’s -400.
Mulally says the improvements being introduced to the 747 design – principally the use of state-of-the-art engines being developed to power the new-generation 787 and A350 twinjets – take “the performance of the 747 to the next level”. The manufacturer says the -8 designation was selected to “show the technology connection between the 787 and the new 747”.
Announcing the launch of the project in London last week, Mulally blamed the previous non-availability of such capable engines for the string of failed attempts to get a stretched 747 off the ground. The problem was that the airframe and aerodynamic changes that would have been needed to deliver the requisite performance improvements without the new powerplants could not be made economically viable, he said.
Designed to accommodate around 450 passengers in three classes, the 747-8 will provide about 20% more capacity than the 777-300 twinjet, but 20% less than the A380-800. “It’s right in the sweet spot of what we think the airlines will want,” says Mulally. He claims that the –8 will offer 8% lower seat-kilometre costs than the 747-400 and 6% lower than those of the A380, but with trip costs “25-30% less than the A380”, principally because the Boeing aircraft will weigh 13% less per seat.
The freighter will boast “15% better” tonne-kilometre costs than the 747-400 and “23% better than the A380”, Mulally claims. “The primary market will be Europe and Asia because it’s just expanding so fast in freight,” he adds. The two 747-8 variants will be exclusively powered by General Electric GEnx turbofans.
Production of the 747-400, which currently has an order backlog of 47, will cease following the entry into service of the -8 in 2009. List price of the -8 Intercontinental is $250-265 million and the -8F $265-275 million, compared with $205-237 million and $210-236 million for the -400ER and -400ERF, respectively.
ANDREW DOYLE/LONDON
As mentioned above by gmnstrunr37, the deal is actually for 70 737s valued at about $5 bil.
Hmmm…not sure…what do you think?

I’m thinking about taking one of them, but I’ll have to wait and see if I get that raise first. 😀
Boeing: ‘No successor to 737 before decade end’
Flight International
28-June-05
Boeing has acknowledged the start of talks with engine makers over the range of potential technologies required for a future narrowbody, but the US manufacturer says there is no possibility of a 737 successor by the end of this decade.
Commenting on the growing speculation over a new narrowbody programme, Boeing Commercial Airplanes president Alan Mulally says: “We’re talking to all three of them [the engine makers] about the technology, but we need a few more years before we see the next important leap. Right now there’s nothing we can do that will economically obsolete that aircraft [the Next Generation 737].”
Mulally does add, however, that with 787 composite airframe primary structure technology available “we’ll be capable of doing fuselages all the way from 80 to 220 passengers”. Based on the single-piece barrel construction technology being developed for the 787, Mulally says this should give Boeing flexibility to offer a variety of three or so fuselages with five- or six-abreast cross-sections.
Originally posted by 4 engines good
I must say I really can’t understand why anyone would want to order new 767s today
767 earns reprieve as 787 ramp-up considered
Flight International
21-June-05
Boeing is studying a faster production ramp-up for the 787 through 2008-10 to meet airline demand and, in a related move, has stayed the execution of the 767 to fulfil what are expected to be “fall-back” sales. The company plans to deliver a total of 95 787s in 2008-9, itself representing a virtually unparalleled production figure for a new commercial model.
However, 787 vice-president and general manager Mike Bair says “we’re looking to see if we can up those numbers and pull the ramp-up forward if we can. The market would take as many as we could produce.” Boeing Commercial Airplanes president Alan Mulally adds: “We’re sold out for the first three years, and it’s an issue – a positive issue.” As a fallout, Boeing appears to have secured new 767 sales as a fall-back, although these have yet to be announced. Mulally says that as a result, “we will not have to make that decision [to shut the line] this year. It looked like we would, but with the additional activity we’re having with customers it looks like we won’t.” He says the availability question on the 787 is “partially the reason for more demand for the 767”.
Bair says the ramp-up study involves “an assessment of our entire supply chain to see if we can do it. We have to see what is a prudent ramp-up, and not an imprudent increase as we did on the 737 Next Generation,” he adds, referring to the production crisis suffered by the company when it prematurely sought to raise 737 production rates in the 1990s.
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Reprieve for 767/747?
Flight International (via Airline Business)
1-July-05
Renewed sales interest in both the 767 and 747 means that Boeing will not have to decide this year whether to cease production of the slow-selling types. Both will go on for “a number of years”, providing a bridge to the entry into service of the new 787 mid-sized cruiser and proposed 747 Advanced. “It represents a very low risk approach to move up in scale,” says Boeing head salesman Scott Carson.