Airbus beats Boeing for aircraft orders
Airbus announced a record number of jet orders for 2005, unexpectedly beating Boeing’s tally for a fifth straight year. But the European plane maker fell behind its rival on order value as sales of its larger planes failed to keep pace. Airbus announced a review of its long-range A340 airliner in the wake of disappointing orders.
Toulouse, France-based Airbus unveiled a total of 1,055 net orders yesterday, trouncing its US rival’s 1,002, and said it delivered 378 airliners last year to Boeing’s 290. Gross orders – which do not take account of cancellations – came to 1,111, the largest number ever booked either side of the Atlantic.
The Airbus figures defied predictions that the European plane maker would lose the lead in order numbers it took from Boeing in 2001, two years before pulling ahead on deliveries. In the 11 months to November 30, Airbus had reported 687 firm orders.
“We had a very busy December,” Airbus Chief Executive Gustav Humbert said at a briefing before yesterday’s announcement. Last year saw record demand for planes as air travel took off on many emerging markets, spawning a new generation of low-cost airlines, and existing carriers upgraded fleets to save on soaring fuel bills.
But Airbus lost its market leadership in value terms, after Boeing won 70% of global orders for larger, pricier planes. Humbert said Airbus’ share of total order value, measured at catalogue prices, shrank to 45% last year. It was 54% in 2004, according to Airbus figures.
“We’re not happy with this situation,” the Airbus CEO said, “and therefore we’ll have a special look at this. But there’s no need to panic – one year doesn’t make a trend.”
Airbus said its 2005 orders were worth $95.9bn (€79.3bn) at list prices. According to its stated market share, Boeing’s orders came to $117bn (€96.5bn). Boeing spokesman Peter Conte declined to give precise figures but said the Airbus calculation was a “pretty good estimate.” Neither company discloses actual prices agreed with airlines, which are often heavily discounted.
Single-aisle planes accounted for 924 of the Airbus orders – many of them booked in a December surge of new business, boosted by China’s purchase of 150 A320s during a visit to France by Prime Minister Wen Jiabao. The A340 attracted only 15 firm orders in 2005, while Boeing won 154 orders for its competing twin-engined 777s.
Humbert indicated he plans to review the A340, a four-engined jet that flies 380 passengers up to 7,500 nautical miles in the largest of its three versions.
“We can and will do better in the long-range field,” Humbert said, insisting it was too early to discuss what changes Airbus might make, if any – ranging from a price cut to a substantive revamp or even a new model. “If we think something has to be done then I will act very quickly, but nothing is on the table,” he said.
