Looking ahead
Published 9:00 pm Sunday, December 11, 2005
There’s been some rumbling the past week or so that jet sales will drop off in 2006. Along these lines, the Associated Press reports today that Airbus expects next year to be a good one, if not as strong as ‘05. http://www.businessweek.com/ap/financialnews/D8EEMGA02.htm?campaign_id=apn_euro_up&chan=gb
Key Quote: “‘The general future outlook is healthy and orders will be good next year,’ Christopher Buckley, (Airbus’) senior vice president for Europe, told Dow Jones Newswires. ‘However, 2005 has been a record year … and we would be surprised if 2006 were as much of a boom year,’ he added.”
It sometimes seems that every airline in the world has ordered new jets this year. (Hello, Ariana Afghan and Volga-Dnepr airlines.) But that’s not the case. Aside from the US majors (see last week’s posting on United http://www.heraldnet.com/blog/display_blog.cfm?bid=808&day=05&startmonth=12&startyear=2005&id=1), a number of overseas carriers are still out shopping.
Kazhakstan intends to by 30 or so new jets for its national airline, according to press reports from the former Soviet Union. http://en.rian.ru/world/20051210/42426066.html (I’ll give you this link, too, but only if you promise NOT to click on the banner ad for the Russian brides matchmaking service: http://enews.ferghana.ru/detail.php?id=14141414141.931,1653,13821971)
Key Quote, from Novosti, the Russian news agency: “‘The prime minister stressed that Kazakhstan intended to modernize its air fleet with priority given to improving medium-haul regional services,’ the Kazakh government press service said Saturday.”
Boeing also is in talks with Malaysian Airline System on an order to replace 39 aging 737 Classics, Business Times of Kuala Lumpur reports. http://www.btimes.com.my/Current_News/BT/Monday/Corporate/20051211234210/Article/
In a sign of how full Boeing’s order book is getting, the company publicly warned the airline that if it doesn’t complete the deal in the next few months, it won’t be able to get new planes for at least five years.
Key Quote: “The company has been holding positions for the national carrier since last March, its international sales director Paul G. Dubeck said. ‘We can maintain the position for another six months. After that, they (MAS) can probably get the aircraft in 2010 or 2012,’ he told Business Times.”
Philippine Airlines is also in the market for new planes to replace nine aging 747s on its highly profitable routes to the United States, according to INQ7.net, which is an online joint venture of the Philippine Daily Inquirer.
http://money.inq7.net/topstories/view_topstories.php?yyyy=2005&mon=12&dd=12&file=5
Key Quote, from PAL president Jaime Bautista: “‘We will lease or buy. The problem with wide-bodied planes is that they’re expensive,’ he said. … PAL, he said, has yet to decide whether to go for Boeing or for Airbus jets.”
