Boeing Jet Deliveries Drop 26% in ’03

Boeing Co. said Tuesday that deliveries of its jetliners fell 26% to 281 aircraft in 2003, marking the first year that European rival Airbus delivered more planes to the world’s airlines.

Of Boeing’s total deliveries, more than half were for the next-generation 737, a plane popular on short- and medium-distance routes.

Boeing did not report overall orders for the full year, but as of Dec. 23, it posted 236 orders on its website.

Although Airbus, 80% owned by EADS, won’t release its official totals until Jan. 15, it delivered its 300th plane in 2003 to Singapore Airlines just before Christmas. Airbus, whose additional 20% is owned by British aerospace and defense industries group BAE Systems, is expected to announce the delivery of slightly more than 300 aircraft for all of 2003.

Chicago-based Boeing, the world’s largest aerospace company, had projected 280 deliveries in 2003 after delivering about a hundred planes more in 2002. Last year’s result is the lowest level since the 271 tallied in 1996.

Toulouse, France-based Airbus has been aggressive in marketing its line of jetliners for about a decade and has been making steady inroads against Boeing, the only other manufacturer of large commercial jets, particularly in recent years.

In 1999, when U.S. airlines posted strong profits, Boeing delivered 620 airplanes. Now, with the U.S. airline industry still in the midst of its worst financial downturn, Boeing’s delivery totals are less than half that.

Aviation experts have expected for some time that Airbus would surpass Boeing in 2003. But the news comes at a time when Boeing, also the No. 2 U.S. military contractor, is suffering several additional setbacks, including the recent departures of its top two executives.

Chief Executive Phil Condit resigned late last year in the wake of scandals and performance problems in Boeing’s military contracting business, including the firing of Chief Financial Officer Michael Sears in November for alleged unethical conduct.

The company also has been banned from military rocket launch contract awards after using rival Lockheed Martin Corp.’s proprietary documents to win the original deal.

Boeing on Tuesday named James Bell as chief financial officer on a permanent basis to replace Sears. Bell, 55, had been acting as CFO since Sears’ dismissal.

Boeing shares closed down 14 cents to $41.93 on the New York Stock Exchange.