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

Airborne 03.30.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.27.15

Airborne Hi-Def On YouTube

Airborne 03.30.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.27.15

 

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

For Real! HondaJet Receives Provisional TC From FAA

Next Big Step Taken In Honda's Plans For The Business Aviation Market The HondaJet has received provisional type certification (PTC) from the FAA. This achievement indicates the FA>[...]

Klyde Morris (03.30.15)

Klyde's Got Worries... Lots Of Them FMI: www.klydemorris.com>[...]

AeroSports Update: Aerobatic Powerhouse Julie Clark To Be At Sun ‘N Fun

Even The Best Airshow Performers In The World Need Sponsorships, And Julie Clark Has Just Announced She Will Be Sponsored By Tempest And Electroair At Sun-N-Fun 2015 Julie Clark Ai>[...]

Airborne 03.27.15: Cockpit Changes Announced, Maine v UAVs, NBAA v Santa Monica

Also: AirVenture Update, Barnstorming Opines On Media Aero-Reporting, NTSB Update, ERAU Scholarships, Doolittle Raiders, Tecnam P2010 The loss of Germanwings Flight 9525 due to wha>[...]

Aero-News: Quote Of The Day (03.30.15)

“EAA AirVenture creates unmatched opportunities for people to see aircraft in one place that you cannot see anywhere else in the world. It’s only fitting that on the B->[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC