Airbus kicks off air show with $43 billion in orders
Airbus stole the spotlight from U.S. rival Boeing Co. during the opening of the Paris Air Show on Monday, announcing airliner deals worth about $43 billion.
Boeing, in contrast, tallied up orders worth $4.4 billion. Some, but not all, of the Airbus orders were new, including Qatar Airlines’ purchase of 80 of Airbus’ A350s, worth more than $18 billion.
Despite its early lead in the traditional transatlantic rivalry at the weeklong show in Le Bourget, Airbus still has a long way to go to match Boeing’s hot-selling 787 Dreamliner. Heading into the event, Chicago-based Boeing had received 584 orders for the 787, compared with Airbus’ total of 13 firm orders and 142 tentative commitments for its A350, which is similar in passenger capacity and range to the 787.
Toulouse, France-based Airbus on Monday reported 114 new firm orders for the A350, including the 80 from Qatar and 12 from Kuwait Aviation Lease. US Airways also announced plans to add two to its previous order of 20. Including firm orders and future commitments, Airbus said it had received orders for a total of 339 aircraft, valued at $43.3 billion, based on average list prices.
The success of the A350 is by no means assured. Airbus’ decision to launch an extensive redesign of the jet after customer complaints has pushed back its delivery date until 2013, years behind the first deliveries of Boeing’s rival Dreamliner 787, due in May.
Critics also remain outspoken, among them Steve Udvar-Hazy, the founder and chief executive of Century City-based International Lease Finance Corp., the world’s largest airline leasing company. He has said that the A350 is no match for the 787 and has hinted that he will sign a deal for a significant number of 787s in the coming days.
Emirates, which on Monday ordered an additional eight Airbus double-decker A380s in a deal estimated to be worth about $2.5 billion, remained ambivalent about its future choice between the A350 and the 787.
Boeing is scheduled to provide today an update on the 787, the first commercial jet made of light, sturdy, carbon-fiber composites instead of aluminum. It also is likely to announce more orders for the jetliner.
Scott Carson, the head of Boeing Commercial Airplanes, said Monday that the Dreamliner was on track to begin test flights in August or September. Deliveries to airlines are expected to commence in May.
Carson also announced Monday that GE Commercial Aviation Services had ordered six of Boeing’s 777 freighters, worth a total of $1.42 billion at list prices.
