This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Aircraft Executives Talk of Industry's Struggles June 16, 2003 By THE ASSOCIATED PRESS PARIS, June 15 (AP) - Senior executives of the world's two biggest makers of passenger jets underlined the difficult economics of commercial aviation today - while sticking with their forecasts for the number of planes they will deliver this year. Alan Mulally, the head of the passenger jet business of one of the manufacturers, Boeing, said the company was on target to reach the delivery of 280 planes. Noël Forgeard, the chief executive of the other company, Airbus, confirmed his goal of 300 aircraft. The rival companies have struggled to keep orders and deliveries flowing as airlines reduce their passenger capacity. Air travel has recently declined further because of fear of SARS, the Iraq war and economic uncertainty in Europe and the United States. Meeting the goal of 300 "will be quite an achievement in view of existing conditions," Mr. Forgeard said. Last year, Airbus delivered 303 planes. Mr. Forgeard said that "the three years ahead will be difficult for all industry players, including Airbus," and described the downturn in the airline business "as the most severe crisis the aviation industry has ever faced." Mr. Mulally said Boeing was working intensively with customers and had cut its production capacity. "It's really tough for the airlines," he said. "They need to get their balance sheets repaired and get profitable again." He said Boeing would deliver 280 planes this year, down from 381 in 2002, and estimated 275 to 300 in 2004. Orders, he said, were likely to begin recovering in earnest in 2005. Each executive promoted his company's concept for the next leap forward in air travel - Airbus with its 550-seat A380, to enter service in 2006, and Boeing with its fuel-efficient 7E7 expected in 2008. Neither plane has flown yet. Neither executive expressed much worry about the roughly 2,100 aircraft that have been taken out of service worldwide. Many are older planes that were near the end of their life span, and only 500 to 600 could be brought back into service, they said. http://www.nytimes.com/2003/06/16/business/16JETS.html?ex=1056770424&ei=1&en=a4f308f8fe049a9f --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html 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@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company