Boeing Takes Off The Gloves At Paris | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Oshkosh Day One

Oshkosh Day Two

Oshkosh Day Three

Oshkosh Day Four

Oshkosh Day Five

Airborne Hi-Def On YouTube

Oshkosh Day One

Oshkosh Day Two

Oshkosh Day Three

Oshkosh Day Four

Oshkosh Day Five

Tweet Us The Coolest Things You See @OSH16!
#OSH16Coolest!

It's Alive!: AirVenture 2016 Innovation Preview on Vimeo!

It's Alive!: AirVenture 2016 Innovation Preview on YouTube!

Mon, Jun 16, 2003

Boeing Takes Off The Gloves At Paris

Accuses Rival Airbus Of Being "Irresponsible"

Since the horrific downturn in the aviation industry began on Sept. 11, 2001, Airbus has been "irresponsible" in not making more cuts in production. That word from Boeing's Alan Mulally, CEO of the company's commercial aircraft division at the Paris Air Show this weekend. Mulally says the resulting glut of high-end commercial aircraft on the market could hurt the industry for years to come.

The Financial Times of London quotes Mulally as saying, "When demand went down, we dramatically reduced production to support our customers, otherwise you hit [aircraft] residual values and you delay the recovery."

Airbus Set To Overtake Boeing Production

Airbus deliveries peaked at 325 in 2001, before the terror attacks involving hijacked commercial jets on New York and Washington. Last year, Airbus delivered only slighly fewer aircraft - 303. In 2003, The Financial Times quotes Airbus CEO Noel Forgeard as predicting the company will again deliver more than 300 aircraft to customers worldwide. Boeing expects to deliver just 280 commercial aircraft this year. That means Airbus will, if the forecast holds, outpace Boeing for the first time in history.

"Everything leads us to believe that we can deliver 300 planes this year. We believe we can make the 300," Forgeard (right) said. "We will also be around 250 orders for the year. The market is better than we expected and our market share has increased much more than we anticipated."

But Boeing's Mulally has chopped production in half, laid off more than 35,000 workers and is actively shopping for community financial particiaption wherever it contemplates setting up shop. In other words, Boeing has done some considerable belt-tightening. The question at Paris this year is: Did Boeing leave orders on the table - orders picked up by chief rival Airbus?

Pointing directly to the Airbus challenge, Mulally (right) said the European consortium is creating a glut of heavy iron on the market, one that will create "huge problems in pricing and that hits the industry too."

The forecasts from both Mulally and Forgeard do have their bright spots. Both see the airline industry recovering in 2004 and 2005, reaching RPMs similar to those achieved during 2000. Even better news for the mega-rivals: of the 2000 aircraft mothballed by airlines in the Mojave Desert since Sept. 11, 2001, only "500-600 will be restored to service," according to Mulally. The rest will bake in the sunshine, victims of 9/11 and of the resulting need to streamline and simplify fleet operations.

FMI: www.boeing.com, www.airbus.com

Advertisement

More News

AutoGyro Introduces Type Certified Gyroplanes In The U.S.

Two Versions Of The Calidus Gyroplane FAA Approved The FAA has type-certified two versions of the German-built Calidus Gyroplane after the recent completion of conformity testing c>[...]

SPA Introduces Their 3.3 Liter Corvair Conversion

'Engine In Box' Option Allows Quicker Competition Times For Builders In the North Aircraft display area, Dan and Rachel Weseman of Sport Performance Aviation LLC debuted their late>[...]

Avidyne Makes Innovative Use Of IFD Series With iPads

Provide Interesting Big Glass Solutions For Both Forward Fit And Retrofit Avidyne is showcasing some innovative ‘Big Glass’ configurations in their booth at Oshkosh thi>[...]

Wipaire Helps ANN Make AirVenture Coverage Happen!

Wipaire Is A Leading Aircraft Service Provider, and the Holder Of Over 100 STCs For over 55 years, Wipaire has been engineering and manufacturing a full line of aircraft floats for>[...]

Airborne 07.26.16-Oshkosh Day 2: Solar Impulse, Sun Flyer, Stemme S-12

Also: AEA $$Giveaway$$, LAM Aviation, Able Flight, Jack Pelton On Aero-Medical Reform We start our report this morning with something that has very little to do with the EAA AirVen>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC