Foresaking jet orders drama, Boeing talks military

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



Foresaking jet orders drama, Boeing talks military

LE BOURGET, France (Reuters) =97 Overshadowed by arch rival Airbus in its=20
core commercial jet business, U.S. aerospace giant Boeing has been putting=
=20
the emphasis on its diverse array of military products at this week's Paris=
=20
Air Show. Airbus won big aircraft orders from two Middle East airlines,=20
Emirates and Qatar, eclipsing Boeing in the news headlines all week despite=
=20
Boeing's inclusion in the Emirates order via a leasing deal. But such=20
events can be staged public relations exercises and generally do not=20
reflect what goes on behind the scenes at big industry shows, particularly=
=20
on the military side of the aerospace business. Nor do they represent how=20
jet order patterns really play out over the full year, analysts and Boeing=
=20
executives said. Randy Baseler, Boeing's top marketing official, noted that=
=20
of 369 orders announced at the Farnborough air show in 2000, only about 10=
=20
percent were really firm orders. At the show, Boeing had announced 139=20
orders and Airbus, 230. But by year's end, Boeing's total orders were 589=20
and the Airbus' tally was 492, he said. For the next two years, similar=20
patterns emerged, although Airbus' net orders in 2002 surpassed Boeing's by=
=20
57 planes. Ever since the September 11, 2001 U.S. hijacked plane attacks,=20
Boeing's profitability has been hurt as commercial aircraft revenues=20
plunged. Once an upturn in civil aviation begins in earnest in the United=20
States and worries over the SARS virus dissipate, analysts say that trend=20
will reverse.

Meanwhile, it's working the customer that counts and focusing on highly=20
profitable military orders, according to many people attending the show.=20
Boeing is the world's second biggest defence contractor behind Lockheed=20
Martin. "For the most part, we're not negotiating deals," said Toby Bright,=
=20
Boeing's top commercial jet salesman, in an interview. "That's not what=20
goes on at an air show." Jim Albaugh, Boeing's top defence official, told=20
Reuters he was as busy as usual meeting with various customers and=20
constituents despite the lack of top U.S. military officials. In the=20
vanguard of Boeing's booming defence business =97 which will account for=
 more=20
than 50 percent of the entire company's estimated $49 billion in revenue in=
=20
2003 =97 are a number of projects geared to driving the military's fighting=
=20
capabilities toward network-linked systems. Also hot are the recently=20
approved in-flight refuelling tanker leasing deal, missile defence,=20
homeland security, intelligence and unmanned aerial vehicles. There are=20
scores of others including many classified programs.

CHALET NETWORK

At Le Bourget, a working airport on the outskirts of Paris, several rows of=
=20
makeshift "chalets" or elaborate tents are set up for the show on the=20
tarmac. Here, executives, financiers, military officials, suppliers,=20
bankers and others find each other easily, just a short walk away. "I can=20
walk through the chalets in between meetings and touch base with a dozen=20
customers that have just dropped in," Bright said. "It's still about=20
relationships." For instance Bright said everyone at the top of Poland's=20
aviation industry showed up unexpectedly at the Boeing chalet earlier in=20
the week, including the head of national airline LOT . Certainly Boeing has=
=20
suffered from stiff competition from its Toulouse-based European rival over=
=20
the last few decades, which has won business with formerly all-Boeing=20
customers. And as such, maintaining relationships with customers is=20
increasingly critical for Boeing as it prepares for the first time to see=20
its annual commercial aircraft deliveries fall below that of Airbus. While=
=20
Boeing forecasts it will deliver 280 jets this year, Airbus is sticking by=
=20
plans to deliver 300.


***************************************************
The owner of Roger's Trinbago Site/TnTisland.com
Roj (Roger James)

escape email mailto:ejames@xxxxxxxxx
Trinbago site: www.tntisland.com
Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/
Steel Expressions www.mts.net/~ejames/se/
Mas Site: www.tntisland.com/tntrecords/mas2003/
Site of the Week: http://www.carib-link.net/naparima/naps.html
TnT Webdirectory: http://search.co.tt
*********************************************************

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]