This article from NYTimes.com has been sent to you by psa188@juno.com. Airbus Says It Is on Course to Lead Market in Aircraft January 15, 2003 By BARRY JAMES International Herald Tribune PARIS, Jan. 14 - Airbus said today that it was raising the price of its aircraft by an average of 2.5 percent and forecast that it would deliver about 300 aircraft this year, setting it on course to be the market leader in terms of orders and deliveries over the Boeing Company. The company also said it would progressively begin to price aircraft in euros rather than in dollars. That may lure customers seeking to avoid uncertainties over the currency exchange rate. Still, Noël Forgeard, the Airbus president and chief executive, warned of challenges in 2003 after a rocky year when airlines lost $13 billion. "Frankly, I think 2003 will be an extremely difficult year," Mr. Forgeard said. "The expectations of growth are at best meager in the largest economies." He predicted the company would deliver about 300 aircraft again this year, but he acknowledged that the total could drop to 290 or 280. Deliveries by Boeing have halved from about 600 in 1999, while Airbus has slowly raised production in line with overall trends in the market. Mr. Forgeard forecast 170 to 180 new orders this year. Airbus can meet its production target "if - and this is an enormous if - the economic environment remains stable," he said, but he added that with a backlog of more than 1,500 orders, the company should be able to maintain production at current levels. Prospects of a war in Iraq also throw uncertainty over the outlook, Mr. Forgeard noted. This is the first time Airbus has announced a price increase ahead of Boeing. "We have to assume the responsibility of the leader, which is to set the trend," he said. "With over 50 percent of the market, we do believe our aircraft have value and we can charge a bit more for them." He said sales in euros would increase because that would help some customers avoid possible losses in currency conversions. With the euro's rise, Airbus has hedged its exports against any further decline in the dollar for the next four years, Mr. Forgeard said. Airbus said it sold 300 aircraft last year but received 67 cancellations, leaving it with an increase in its order book of 233 airliners. That translates to a 57 percent market share in terms of number of aircraft, and 54 percent in terms of value. Last year, the company delivered 303 aircraft valued at 19.5 billion euros ($20.6 billion). Airbus executives said they remained comfortable with the decision to build the world's largest airliner, the 550-seat A380, which will require investment of more than $10 billion but will not start producing revenue until after 2006. http://www.nytimes.com/2003/01/15/business/15JETS.html?ex=1043641868&ei=1&en=30c772058886a1c2 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company