The view from Europe
Published 9:00 pm Tuesday, January 17, 2006
Here’s what they’re saying in Europe about Airbus’ 2005 orders and deliveries announcement:
The BBC http://news.bbc.co.uk/2/hi/business/4619854.stm reported that Airbus “retained its market dominance,” but also noted:
“Bosses indicated that the company might review its A340 model, which only sold 15 models as of 30 November, compared with Boeing’s rival, the 777, which took 154 orders. As a result, Boeing won the larger proportion of the passenger jet market in terms of value, with a 55% share. ‘This is not a major crisis… but we can do better in this area,’ said chief executive Gustav Humbert.”
The Times, from London, reported http://business.timesonline.co.uk/article/0,,9077-1989710,00.html that Airbus now claims “51 per cent of the civilian aviation market and has beaten Boeing on overall orders for the fifth consecutive year.”
But the paper also noted that “today’s figures did not represent an unqualified success for Airbus. Mr Humbert conceded that Boeing had won the battle over orders for the larger long-haul carriers. ‘We are behind Boeing in the wide-body, long-range order intake. It was a special situation for the long-range last year, but one year doesn’t make a trend,’ he said. … Mr Humbert added that Airbus aimed to respond by capturing 50 per cent of the long-distance aircraft market within two years.”
The Times also said Airbus plans to deliver “more than 400” planes next year. Boeing is aiming at 395.
The Guardian http://business.guardian.co.uk/story/0,,1688443,00.html in Manchester reported that Airbus executives claim they’ll turn a 10-percent profit on their 2005 orders, despite “very aggressive pricing from Boeing.”
The paper also noted Humbert’s vow to improve Airbus’ performance in the long-range twin-aisle market:
“Airbus is particularly concerned at Boeing’s success with the 777, which competes with the A340. Airbus has won only 15 orders for the A340 whereas airlines have placed 154 orders for 777 models. Mr Humbert said he wanted to catch up with Boeing in long-range and wide-bodied jets within two years. ‘We have to take the next two years to really come up to the same 50-50 level of orders of long-range and wide-bodied aircraft,’ he said.”
Reuters http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2006-01-17T153650Z_01_PAC005669_RTRIDST_0_BUSINESSPRO-TRANSPORT-AIRBUS-DC.XML took a long look at Airbus’ response to Boeing’s dominance of twin-aisle sales. However, Reuters said, Airbus execs downplayed their level of concern about the trend:
“(Humbert) denied plans were afoot to redesign its slow-selling A340 long-range jet, but admitted Airbus wanted to do better. ‘We have to take the next two years to really come up to the same 50-50 level of orders of long-range and wide-bodied aircraft,’ he said … Even Airbus’s newest model lagged its Boeing rival, as the mid-sized, long-range Boeing 787 took 235 orders versus 87 orders for the Airbus A350. ‘I’m not worried about their cabin size or their economics. The one thing they have is they can deliver a 787 about three years ahead of me,’ said top Airbus salesman John Leahy, noting the 787 is due in mid-2008 and the A350 will come in late 2010.”
And finally, The Daily Post in Liverpool looked http://icliverpool.icnetwork.co.uk/business/news/tm_objectid=16597760&method=full&siteid=50061&headline=bulging-jet-order-book-puts-airbus-ahead-of-boeing-name_page.html at what the record sales effort would mean for workers at British plants that supply wings for Airbus:
“Alyn and Deeside (Member of Parliament) Mark Tami said it was great news for the workforce at Airbus’ wing plant on Deeside. He said: ‘Winning the top position in the global battle for air dominance has only been achieved through having a loyal workforce, outstanding management team and brilliant trade union representation. … The backlog of orders for Airbus now stands at a record 2,177 which means thousands of jobs will be secure at the plant for many years to come.’”
