May Slump By More Than Half From 2005

At the Asian Aerospace exhibition Wednesday, Airbus sales chief John Leahy (right) told reporters the market for airliners could dip by more than half this year from 2005's record total of 2,057 orders between the European consortium and its archrival, Boeing. Leahy expects total sales for 2006 to hover around 800 jets.

"I think we'd be right around that level," Leahy told reporters in Singapore Wednesday, before adding "Asia will still be very strong."

As Aero-News reported last month, during his January 17 news conference announcing Airbus's record 2005 sales total of 1,055 aircraft, CEO Gustav Humbert hinted that 2006 likely wouldn't come close to matching that record total. Sales in 2005 were fueled by several factors, most notably from pent-up demand on the part of carriers who were badly shaken in the days following the 9/11 terrorist attacks.

Although it hasn't released concrete numbers, Boeing is also reportedly expecting a much weaker sales year for 2006.

After such a strong year in 2005, one may wonder "who's left?" to order any more aircraft. The answer to that question is Asia... despite the fact the region accounted for nearly half of all worldwide aircraft orders last year. The market is still growing -- and Airbus expects to be there to handle it.

Leahy told Reuters he expects several airlines in the region to sign on the dotted line over the next several months for its upcoming A350. He also expects to sign two new A380 customers this year, and to that end the A380 prototype is on display at the Asian air show, bedecked in an exaggerated version of launch-customer Singapore Airlines' livery.

The Airbus sales guru was less forthcoming about rumors the company is hurriedly incorporating technology from the A350 and A380 to its slow-selling four-engined A340, which is being markedly outsold by Boeing's twin-engined 777 on the global stage. Leahy would not comment on reports the company is already reaching out to airlines with an enhanced version of the A340-600.

"We always look at updating our products... it comes down to what customers tell us they want," he said.

As far as other possible new products from Airbus, Leahy said several were under consideration -- including the much-rumored 1000-seat version of the A380, as well as freighter version of the A330-200. Should such an aircraft come to fruition, it could mean the end of Airbus's original A300/A310 family of widebodied aircraft.

FMI: www.airbus.com