SFGate: Airbus orders top Boeing's at Farnborough

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Thursday, July 17, 2008 (AP)
Airbus orders top Boeing's at Farnborough
By JANE WARDELL, AP Business Writer


   (07-17) 07:55 PDT FARNBOROUGH, England (AP) --
   European plane maker Airbus emerged as the clear winner at the Farnborou=
gh
International Airshow on Thursday after racking up plane orders dwarfing
the deals done by U.S. rival Boeing Co.
   An agreement to sell South American consortium Synergy Aerospace 10
aircraft worth $2.1 billion took Airbus' total orders so far at the
weeklong show outside of London to 247 planes worth $38.7 billion at
catalog prices.
   Boeing, meanwhile, boosted its show tally to 197 planes worth $23.1
billion with an apparent headline grabbing deal with Air China for 45 of
its planes worth $6.3 billion.
   But the Air China deal, along with two others from Etihad Airways and
Malaysia Airways, were already on Boeing's books — attributed to
unidentified buyers. Removing those from the tally, the Chicago-based
plane maker's deals at the world's biggest air show drop to just $5.6
billion.
   Airbus on Thursday held a self-congratulatory press conference, with the
Toulouse, France-based company's chief salesman John Leahy saying the
figures defied the "doom and gloom" that many industry watchers had
expected to pervade this year's air show given soaring oil prices and the
global credit crisis.
   "We think it ended up pretty well," Leahy said, adding that Airbus viewed
the practice of placing orders on the books before confirming buyers as
"quite silly."
   "We are quite comfortable with the fact that we are going to have 50
percent of the world market," he added, when asked if the company was
disappointed that Etihad had split its order between the two major plane
makers. "We have never had a goal to do what they have done in the past
years and dominate the market with 80 percent or 90 percent."
   Airbus now has a total of 730 firm orders for the year so far.
   Most of the purchases at the biggest event of the global aviation calend=
ar
have been made by Asian and Middle Eastern airlines and plane leasing
companies. Cash-strapped carriers from Europe and the U.S., under heavy
pressure from high fuel prices and slowing economic growth, have held on
to their wallets.
   Asian and Middle Eastern carriers are banking on a degree of insulation
from the global credit squeeze and expected growth in infrastructure and
tourism to justify purchases, while the leasing companies are relying on
the likelihood many carriers elsewhere will be keen to budget by renting,
rather than buying, planes until the economy improves.
   Total firm plane orders for the show to date — including deals for
Embraer, the world's third-biggest manufacturer, Russia's Sukhoi and
Canada's Bombardier — reached about $57.7 billion on Thursday,
according to an Associated Press tally based on company statements and
list prices.
   Airlines usually negotiate discounts to the official list prices for
planes, and while all the deal makers decline to comment, analysts expect
the discounts were deeper than usual this time around with soaring oil
prices and the credit crunch crimping demand from many quarters.
   Etihad Airways, the state carrier of the United Arab Emirates, has the
biggest order by an airline so far at Farnborough, splitting an order for
100 aircraft between Airbus and Boeing worth $20 billion at list prices.
   Other deals have been signed by Qatar Airways, FlyDubai, Saudi Arabian
Airlines, Malaysia Airlines, Asiana Airlines and Arik Air since the show
began on Monday.
   Leasing companies buying have included Aviation Capital Group and a unit
of Dubai Aerospace Enterprise.
   Those deals pushed the combined Boeing and Airbus total closer to the 506
orders the pair took at the Le Bourget air show last year than many
airlines expected before this event opened.
   Plane makers have also been using the show to push the line that the
current financial outlook could spur an industry shift toward cleaner
flying, with the event hosting a summit on "sustainable aviation" attended
by executives from Airbus, Boeing and British Airways.
   Industry leaders at the summit struck a tone between conciliatory and
defensive on global warming Wednesday — pledging to make flying more
fuel-efficient but bridling at a European Union emissions trading scheme
they see as unfair to European carriers.
   Boeing Co. has touted its 787 jet for its greater fuel efficiency while
Airbus has done the same with its A380, but both have been hampered by
lengthy production delays. Both carriers picked up new orders for those
planes at Farnborough.
   Almost 1,500 exhibitors from 35 countries are showing off the latest in
aviation technology at Farnborough. The air show runs through July 18 for
aerospace professionals only; public days are July 19 and 20. -------------=
---------------------------------------------------------
Copyright 2008 AP

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