EVERETT — The Boeing Co. begins this week’s Farnborough Air Show just slightly behind its European rival Airbus in commercial jet orders this year.
Boeing has bested Airbus the past two years in net aircraft orders but remains 12 orders behind Airbus at mid-point in 2008. But analysts aren’t expecting either jet maker to win as many orders at the U.K. air show as they have at recent industry events.
Still, “we’re going to see solid orders,” said Richard Aboulafia, analyst with the Teal Group.
Despite fears that high fuel prices will drive down orders and cause cancellations and deferrals, both Boeing and Airbus head into the show, to be held in Farnborough, Great Britain, with a combined total of nearly 1,000 orders. Airbus listed 487 net orders at the end of June, compared with Boeing’s 475 orders.
Aboulafia expects Middle Eastern carriers to reveal new orders at the air show. Ethiad Airways, the national carrier of the United Arab Emirates, has said it plans to announce orders for 50 to 100 jets at the show, which starts today. And Qatar Airways has said it will hold a joint press conference with Airbus at the air show, which indicates the carrier will make a major order announcement.
Another potential order announcement that could come at Farnborough is one from International Lease and Finance Corp. The lessor has made public its intent to place orders for 150 aircraft with both Boeing and Airbus and could reveal orders at the air show.
Farnborough also would provide Boeing a platform to reveal undisclosed customer orders. The customers of more than half of the orders that Boeing has won this year remain anonymous. The company has orders for 180 of its 737 jets from unidentified customers. Boeing also has not named the customers of 58 787s and 10 777s this year.
Both Boeing and Airbus will use the industry event to provide updates on their new commercial jet programs.
Boeing’s Pat Shanahan, vice president of its 787 program, will discuss whether the delayed Dreamliner will meet its latest delivery target, the third quarter of 2009. The fast-selling 787 has been delayed at least 15 months. In April, Boeing outlined several milestones that the 787 needs to hit in order to meet the new delivery date. And Shanahan is expected to address those goals.
Airbus will give updates on its A380 superjumbo jet and A350 Extra Wide Body jet programs. The European company has seen a number of setbacks with the A380 even after delivering the first commercial super jumbo jet. Airbus also will highlight its A350 XWB, a mostly carbon fiber composite jet due to enter service in 2013.
Analyst Scott Hamilton, with Leeham Co., in his preview of the air show, noted that the industry will tout its “green” side at Farnborough. With high fuel prices and concerns about global warming, both Boeing and Airbus will emphasize their environmentally-friendly efforts.
The Chicago-based Boeing forged partnerships with U.K.-based Virgin Atlantic and GE Aviation to fly a Virgin 747-400 in February using a bio-fuel made from babassu and coconut oils. Airbus has teamed with Honeywell Aerospace, JetBlue Airways and International Aero Engines for algae-based fuel efforts.
The Farnborough Air Show happens every other year, alternating with the Paris Air Show.
At the last Farnborough Air Show, in 2006, Airbus had the most to prove going into the industry event. The European jet maker still was sorting out the messy delays on its A380. Its top executives had departed. Its A350 design was in the air.
In 2006, Boeing pushed its revamped jumbo jet, the 747-8, and its mid-sized 787. The company again will provide an update on the 787 program at this year’s show. Going into this year’s show, the jet maker has won only two firm orders and a commitment from Nigeria’s Arik Air for its 747.
Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.
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