this is depressing news ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/05/11/f= inancial1041EDT0059.DTL --------------------------------------------------------------------- Tuesday, May 11, 2004 (AP) Airbus confident of matching 2003 orders as budget carriers fuel fledgling = upturn GEIR MOULSON, Associated Press Writer (05-11) 07:41 PDT BERLIN (AP) -- European plane maker Airbus forecast Tuesday that it will at least match last year's deliveries this year, citing a fledgling recovery in the troubled aircraft market driven by budget airlines. Airbus, which last year for the first time delivered more planes than The Boeing Co. did, underlined the challenge by announcing an order from low-cost U.S. carrier Spirit Airlines for 15 A319 and A321 narrow-bodied jets, with an option for 50 more. The company said it was unworried by last month's first order for Boeing= 's mid-sized 7E7 "Dreamliner." Last year, the European manufacturer delivered 305 planes to Boeing's 28= 1. "I now feel confident that we shall be at least at that level" in 2004, Airbus chief executive Noel Forgeard told a news conference at the Berlin International Air Show. Airbus previously had said it would at best match last year's figure. Airbus booked orders for 284 aircraft last year and Forgeard said that "= we expect to be roughly in the same ball park" in 2004, despite a "rather soft" market in the first half. "We think that the recovery of the world market has started," with customers firming up orders and pressing for early deliveries, he added. But the upturn for the industry, hit hard by the Sept. 11, 2001 terrorist attacks, is not yet bringing with it "a strong recovery in prices," Forgeard said. "Most of the traditional airlines have still very weak balance sheets," = he said. "The most dynamic part of the market is the low-cost carriers, who by definition bargain (for) their equipment as much as they can." Airbus did not disclose the value of its deal with Spirit, based in Fort Lauderdale, Fla., which also includes the lease of four A321s. The low-fare airline already is leasing 20 A319s and A321s with delivery to start in September, Airbus said. Spirit, which currently operates 32 MD80 aircraft, will become an all-Airbus airline by 2008, the manufacturer said. The MD80 was produced by McDonnell Douglas, which merged with Boeing in 1997. Forgeard said Airbus hopes to gain at least one new customer this year f= or its A380 superjumbo, which is due to enter service in 2006, and is in talks with four companies. Airbus executives, who already have 129 firm orders from 11 airlines, refused to elaborate. Boeing has been harder hit than Airbus by the slump in the civil aircraft market, slashing production while Airbus simply shelved a plan to ramp up production. While Airbus firmed up the launch of the A380, Boeing twice announced and scrapped plans for new planes, eventually settling on the 7E7. The fuel-efficient midsize 7E7's launch was confirmed last month with a 50-plane order from Japan's All Nippon Airways, although the plane is not expected to enter service before 2008. Forgeard said his company wasn't worried by the launch. "We do not need to react," he said, arguing that Airbus' A330-200 can compete with the newcomer. "It is only normal that we get some competition there," he said. "It's also normal that our competition gets orders -- it's not the end of the world." ---------------------------------------------------------------------- Copyright 2004 AP