Boeing No. 1 again

  • By Michelle Dunlop / Herald Writer
  • Wednesday, November 22, 2006 9:00pm
  • Business

EVERETT -Boeing is back on top.

The Boeing Co. gobbled up a greater share of the commercial jet market this year as conceded by competitor Airbus on Wednesday.

In 2006, Airbus saw the value of its orders shrink to 36 percent, down from 45 percent last year. But Boeing’s European rival still predicted a different outcome for the future of the global aircraft fleet in its long-term forecast.

Airbus anticipates a need for almost double the number of jumbo passenger jets than does Boeing but fewer aircraft overall.

Airbus’ newly released 20-year outlook reflected a greater demand for new aircraft than had its 2004 forecast. The plane-maker with headquarters in Toulouse, France, now says that airlines around the world will require 22,700 new jets worth $2.6 trillion by 2025. It previously forecast 17,300 planes needed by 2023.

“The forecast shows that aviation is a strong growth industry and one which is also vital for the development of the world economy,” said John Leahy, Airbus chief operating officer.

Boeing, which released its 20-year forecast earlier this year, still expects to see a greater number of aircraft deliveries by 2025 with 27,210 planes. Unlike its rival, Boeing believes airlines will put into service more 200- to 400-seat jets, like its 777 and 787 models, and fewer very large jets like Airbus’ A380.

Although Boeing is on track to best Airbus this year in total orders, Airbus’ Leahy maintains that the European company will still deliver more aircraft than its American competitor in both 2006 and 2007. Airbus has logged 619 orders this year compared with the 822 that Boeing accounted for as of Nov. 15.

Airbus set an industry record last year with a total of 1,111 orders, compared with Boeing’s 1,002. But its share by value fell to 45 percent, from 54 percent in 2004, as its widebody A330, A340 and planned A350 planes lost ground to Boeing’s 777 and 787.

Both aircraft manufacturers’ forecasts highlight the emphasis they’re putting on their newest planes.

The first Boeing 787 Dreamliner, a line that accommodates 210 to 330 passengers, should be delivered in 2008. Just last month, Airbus announced the third delay on its 555-seat A380, now scheduled for its first delivery in October 2007.

The decline of Airbus orders puts pressure on the company to launch its A350, a badly needed rival to the 777 and the 787. A decision is expected by the end of the month.

“Speaking on behalf of the world’s airlines, I’m getting a lot of requests for the A350 right now,” Leahy said.

Coincidentally, on Wednesday, Randy Baseler, vice president of marketing for Boeing Commercial Airplanes, posted his thoughts on the A350 on his blog. Based on the information released on the A350, Baseler believes Airbus’ answer to the 787 Dreamliner “still lacks answers to several key technological questions for an airplane entering service as much as 8 or so years from today.”

Without the A350, Airbus will have to try to cover the 200- to 400-seat market with just one airplane family, Baseler wrote. Something he considers “very difficult to do.”

The Associated Press contributed to this report.

Plane forecasts

Heres at look at the forecasts for jet sales through 2025 from the Boeing Co. and its rival Airbus.

Total demand

Boeing: 27,210 planes worth $2.6 trillion.

Airbus: 22,700 planes worth $2.6 trillion.

Single-aisle (737/A380)

Boeing: 16,500.

Airbus: 15,300.

200 to 300 seats (767/787/A330, A340, A350)

Boeing: 3,030.

Airbus: 3,745.

301 to 400 seats: (777, 787/A340-600, A350)

Boeing: 2,770.

Airbus: 1,522.

Jumbo jets: (747/A380)

Boeing: 650.

Airbus: 1,263.

Freighters

Boeing: 770.

Airbus: 803.

Note: Boeing also estimates 3,450 regional jets will be needed. Airbus estimates include its regional jet predictions.

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