Boeing sets record with 1,044 orders

  • By Michelle Dunlop / Herald Writer
  • Thursday, January 4, 2007 9:00pm
  • Business

EVERETT – It’s official.

The Boeing Co. broke its own record last year, picking up 1,044 net orders for commercial jets. That’s 42 requests more than Boeing’s previous best in 2005.

The company seems poised to reclaim its position on top of the commercial airplane market after recent production stumbles have plagued European rival Airbus.

“2006 was another outstanding year for our customers and for Boeing,” said Scott Carson, president and chief executive officer of Boeing Commercial Airplanes in a prepared statement. “We have secured significant orders from customers around the globe and across our product line as we continue to build a strong, well-balanced backlog.”

Boeing also bettered its 2005 delivery total, handing over 398 aircraft to customers last year compared with 290 the previous year. The company has hovered just below the 300-mark the past three years, down drastically from its 527-delivery year in 2001.

Airbus, which will release its year-end totals later this month, will likely fall behind Boeing in sales orders for the first time since 2000. The Toulouse, France-based aircraft manufacturer is expected to keep its lead over Boeing in terms of 2006 deliveries.

The bulk of Boeing’s orders continue to be for its Renton-built 737. For the second consecutive year, the single-aisle jet enjoyed a record-setting year with 729 net orders, topping last year’s high of 569.

Boeing didn’t snag as many orders for the new 787 Dreamliner last year as it had in 2005. The fuel-efficient plane, scheduled to take its first flight in August, is Boeing’s fastest-selling plane. And the dip in orders doesn’t surprise analyst Scott Hamilton.

“I wouldn’t read anything into that,” he said.

Since the Dreamliner will be built in an entirely different manner than previously produced planes, Boeing officials have kept their production rates conservative. Carriers looking to buy a new Dreamliner could be forced to wait for delivery until 2013 – the same year Airbus will come out with its A350 Extra Wide Body, designed to compete with the 787.

At this point, Hamilton said, airlines might as well hold their orders and wait for one of two events: Boeing to open a second production line or Airbus to finalize plans for the A350.

In 2006, Boeing’s Everett-built 747 experienced a resurgence with its highest demand since 1990. The “Queen of the Skies” raked in 72 orders – its fifth-highest year in the plane’s almost four decades of service.

Freighter orders – 48 -made up the lion’s share of the demand for the 747. In December, the company launched its latest passenger version, the Intercontinental, with a 20-plane order from German carrier Lufthansa.

Halfway around the world, Airbus announced its third delay on the company’s superjumbo jet, which will seat roughly 90 passengers more than the Intercontinental. Until mid-December, when both Quantas and Singapore Airlines placed dibs on additional A380s, Airbus had not received a single order in 2006 for its new plane.

While Airbus may be happy to bid adieu to 2006, the year wasn’t as bad for the European jet maker as those on this side of the Atlantic might believe, Hamilton said. Troubles aside, Airbus may still wind up posting its second-highest level of orders to date.

“That number is nothing to sneeze at,” Hamilton said.

Separately, Boeing reported reducing its work force by 2,356 jobs to 154,031 in 2006, with the majority of the cuts in California. But it has now added jobs for 31 consecutive months in Washington state, where it had 68,170 employees as of Dec. 31, reflecting the need to keep up with strong demand for commercial airplanes.

Boeing shares, which rose 26 percent last year, increased 36 cents to close at $89.53 on the New York Stock Exchange.

The Associated Press contributed to this report

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