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Published: Wednesday, July 16, 2008

Boeing trails Airbus in jet orders at air show

Boeing's top 787 exec briefs potential customers on the Dreamliner's progress.

EVERETT -- European plane maker Airbus signed orders for 144 aircraft at the world's biggest air show on Tuesday, while the Boeing Co. reassured the industry that its previously delayed 787 jetliner remains on schedule.

Airbus confirmed an order worth $13 billion at list prices with a division of Dubai Aerospace Enterprises during the Farnborough International Air Show in England. A tentative agreement had been announced at last November's Dubai Air Show. Airbus rival Boeing confirmed a previously announced order for seven 737s from Nigeria's Arik Air.

Boeing reassured airlines and industry observers that its 787 Dreamliner will take its first flight by the end of 2008. The mostly composite jet is about 15 months behind schedule because of supplier and production issues.

Program manager Pat Shanahan said the Chicago-based plane maker was working to fix a recently discovered brake problem that is key to the aircraft receiving hardware qualifications in the next month or so. Shanahan stressed the program is making steady progress, from recent production line moves to turning the power on the first Dreamliner aircraft in Everett last month.

"We are currently in the build-verification testing process, which validates electronics and hardware on the airplane to make sure they are functioning properly," he said. "Things will really get exciting when we fuel the airplane and start the engines."

Boeing has won nearly 900 orders for its fuel-efficient 787, including an order for 35 Dreamliner jets from Ethiad.

Over the first two days of the air show, Boeing has announced orders for 102 jets. It should tack on another 45 jet requests following the approval from Air China's board Tuesday to buy 15 777s and 30 737s.

Airbus has topped Boeing in orders at the show so far. The European company has won 207 firm orders at Farnborough. On Tuesday, it signed deals with U.S.-based Aviation Capital Group for 23 single-aisle A320 jets and with Russia's Aeroflot for five A320 aircraft.

North African carrier Tunisair placed an order with Airbus on Tuesday for three A350s, three A330s and 10 A320s. Airbus said Tunisair was the third African airline to order its A350 Extra Wide Body jet, due out in 2013. The mostly composite jet competes primarily with Boeing's 777. Airbus has picked up more than 350 orders for its latest version of the A350, which has gone through several redesigns.

Airlines from oil-rich Middle Eastern countries have saved the Farnborough International Air Show from an otherwise lackluster start, signing orders for around 150 planes worth more than $25 billion Monday.

Many European and U.S. airlines are struggling to cope with rocketing fuel prices and dampening passenger demand, combined with tighter credit conditions.

In contrast, several Middle Eastern carriers with the benefit of oil-backed sovereign wealth funds are banking on anticipated huge investment and greater tourism in the Gulf region to justify spending at a time when there is talk in the industry of potential cancellations and delays on existing orders.

"We carriers from the Gulf are the center of attraction these days," said Qatar Airways CEO Akbar Al Baker as he announced a tentative order for four A321s worth $360 million at list prices to a packed room of journalists.

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