SFGate: Airbus extends air show order lead over Boeing

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Thursday, June 18, 2009 (AP)
Airbus extends air show order lead over Boeing
By GREG KELLER, AP Business Writer


   (06-18) 05:26 PDT LE BOURGET, France (AP) --
   Airbus extended its lead over archrival Boeing Co. in the hunt for orders
at the Paris Air Show on Thursday with the signature of two deals with
Chinese and Hungarian airlines.
   On the fourth day of the world's largest air show, which has seen far
fewer deals than years past, Airbus and Hungarian budget carrier Wizz Air
signed a memorandum of understanding for 50 A320 single-aisle passenger
jets worth a total of $3.8 billion at list prices.
   The deal should become a firm order shortly, Airbus' Chief Operating
Officer John Leahy said at a signing ceremony.
   Including its existing fleet of 24 A320s, Wizz Air will have ordered a
total of 132 Airbus jets, Airbus said.
   The Wizz Air deal came on the back of a $1.45 billion order for 20 A320s
that Airbus customer China Eastern Airlines announced overnight.
   Airbus has now racked up $11.5 billion in orders and agreements this wee=
k,
well ahead of Boeing, which notched up its first air show order on
Wednesday — a $153 million deal with Japan's MC Aviation Partners
for only two jets.
   Boeing shrugged off the Airbus announcements, saying the company doesn't
save up orders to announce at air shows.
   Yet even Airbus' numbers were diminutive compared to sales in past years.
Airlines and governments strapped for cash and credit appeared to have
come to the air show mostly as tourists instead of buyers this year,
admiring the high-tech hardware but hiding their checkbooks.
   Airbus' spokesman Stefan Schaffrath said he is "confident there are more
orders to come," but time was running out as many exhibitors arrived to
the fourth day of the week-long air show with suitcases in hand.
   The air show, which has also been haunted by unresolved questions about
the crash of Air France Flight 447, opens to the public on Friday.
   With commercial orders scarce, American defense contractors elbowed into
the troubled market for European military transport planes at the air
show.
   As delays mount for Airbus' troubled new A400M military transport
airlifter, Lockheed-Martin and Boeing are offering their proven C-130J and
C-17 models as alternatives to the European air forces who are in urgent
need of a new transport.
   "Many countries in Europe are looking at their airlift requirements and
they need to make decisions in the short term," Peter Simmons, spokesman
for Lockheed's Air Mobility division, said Wednesday. "We have been
approached by a number of countries in Europe to fulfill that role."
   Boeing also says it has held talks with members of the seven-nation
consortium involved in the Airbus program.
   The A400M transporter program was launched in 2003 with a joint order for
180 planes from Belgium, Britain, France, Germany, Luxembourg, Spain and
Turkey. But Airbus missed a March 31 contractual deadline for the first
flight, and is negotiating new technical requirements and commercial terms
with the seven buyers.
   Analysts say the project could even be on the verge of collapse. The
costly delay is especially painful for recession-hit governments. ---------=
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Copyright 2009 AP

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