Airbus Stays No. 1 in Jet Sales, Edging Out Boeing at Year-End
It was Airbus by a nose.
A last-minute surge in aircraft sales propelled Europe’s Airbus past archrival Boeing Co. with a record number of orders in 2005, the fifth consecutive year it bested its U.S. rival.
In an announcement that stunned Boeing officials, Toulouse, France-based Airbus said Tuesday that it sold 1,055 planes last year, surpassing Boeing by 53.
The orders were a record for both companies, the two remaining makers of large passenger jets, as international travel rebounded and business from Asian and European airlines surged.
“With this big success in 2005, we maintain the leadership in our industry,” Airbus Chief Executive Gustav Humbert said.
Airbus also set a record by delivering 378 aircraft in 2005, compared with Boeing’s 290.
Boeing officials and many aerospace analysts expected the Chicago-based company to end the year with more orders than Airbus for the first time since 2000 because Boeing led by 140 orders Nov. 30.
But in early December Airbus snagged an order from China for 150 aircraft, and then sold 70 planes to a European aircraft financing company Dec. 30 to help retain its bragging rights.
“We had a very busy December,” Humbert said.
Some analysts, however, questioned the way Airbus booked its orders.
“Both sides are guilty, but Airbus has really pushed the frontiers” of the way it counts sales, said Richard Aboulafia, an aerospace analyst with research firm Teal Group Corp. “The question now is how much of these orders will stick.”
Plane orders are seen as a key indicator of future performance, but in recent years both companies have loosened their definition of what constitutes a sale to win their public relations battle, analysts said.
Aboulafia said there was a good chance that some Airbus and Boeing orders would be canceled before the planes were produced because “a lot of the growth in the market is speculative” and many of the purchases were from start-up and low-cost airlines.
For this year, Airbus said it expected to deliver about 400 aircraft, but Humbert said it would be difficult to top 1,000 in sales again.
Airbus also acknowledged that it had lost market leadership in terms of the value of orders because Boeing sold more lucrative, wide-body planes in 2005. Airbus said its plane orders last year were worth $95.9 billion at list prices, versus Boeing’s tally of $117 billion.
A Banc of America report Tuesday said the “more interesting story” was Boeing’s dominance in “higher price, higher margin” planes such as its 777. Last year Boeing snagged 154 orders for its 777, compared with only 15 firm orders for Airbus’ similarly sized A340.
Airbus also said that it might consider changes to the four-engine A340 now that it has fallen behind in sales to the 777.
While Airbus and Boeing fight for bragging rights, the record orders will probably mean a boon for suppliers, including hundreds of firms in Southern California, many of which make parts for both companies.
William Alderman, president of aerospace investment bank Alderman & Co., said aircraft suppliers could have their best year since 1998 as the aircraft makers ramp up production.
Shares of Boeing closed Tuesday at $68.69, down 79 cents.
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Times wire services were used in compiling this report.
