Boeing looks to stay on top

  • Bryan Corliss / Herald columnist
  • Tuesday, January 3, 2006 9:00pm
  • Business

The year-end totals won’t be out until Thursday, but it appears the Boeing Co. has outsold Airbus for the first time in the past five years, and probably set an all-time sales record in the process.

The company officially is not gloating about this.

“One year does not determine the horse race,” said spokesman Peter Conte, adding, “2005 was certainly a remarkable year, but it’s only one year.”

Still, the company’s year-end net likely will be more than 900 planes, Conte said. The company went into its holiday break with 870 net orders – one exercised option away from the all-time mark of 877 set by Boeing and McDonnell Douglas in 1988 prior to their merger.

Orders are likely to tail off this year, analysts are saying, but they’re not expected to dry up. Several major deals were not concluded in the 2005 tally, and U.S. airlines are expected to enter the market sometime in the next year or so as they slowly emerge from bankruptcy.

In fact, Airbus already has won the first order of the new year, with a deal for six A350s from Bangkok Airways, the Malaysian national news agency, Bernama, reported Tuesday.

Bangkok already flies Airbus jets, said airline chairman and chief executive Prasert Prasarttong-Osoth, and that “commonality with our Airbus A320 fleet was one of the key drivers in our decision-making process. We are also extremely impressed by the innovative cabin features.”

Meanwhile, German charter carrier Hamburg International plans to dump its fleet of older 737s and order new Airbus A319s, according to Flight International, which quoted an anonymous industry source.

But Boeing also is likely to score some major orders soon. In fact, mark Jan. 11 on your calendar, says The Business Standard, reporting from Mumbai, India.

That’s the date Air India will sign its long-awaited deal for 68 737s, 777s and 787s with Boeing, the newspaper said, quoting what it called “a highly placed source.”

And just who is this “highly placed source?” Well, here’s a hint from the Press Trust of India, which interviewed Air India chairman V. Thulasidas.

“Thulasidas,” the news service said, “was noncommittal about the date on which the deal with Boeing Co. would be signed. However, he indicated that he may talk about it on Jan. 11.”

Yeah, I’d call that a hint.

Meanwhile, in Hong Kong, The Standard reports that Cathay Pacific is looking to buy long-range jets with 200-plus seats. Insiders tell the newspaper that the company is looking at either A350s or 787s – long-range, midsized jets that could handle “long, thin” routes between Asia and secondary cities in Europe and North America.

If Cathay is in the market, Boeing’s got to be the front-runner, considering the airline just bought 777s and is often mentioned as a potential customer for the 747-8 advanced jumbo jet.

While downplaying Boeing’s apparent win in the 2005 order race, Conte said the company did gain confidence from the year’s sales totals. “We feel very strongly that what is important is how the market responds to your products and product strategy,” he said.

The 900 or so sales on the books for 2005 represent “a strong market validation of our products and strategy,” he said.

It’s hard to argue with that.

Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.

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