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Wednesday, July 21, 2004

Another air show, another row via Economist

Airbus and Boeing are both forecasting a recovery in demand for aircraft after a three-year slump. Airbus is the more bullish of the two, having delivered more planes than its American rival for the first time last year. This ascendancy has led Boeing to renew its complaints about subsidies to Airbus.There are conflicting signs as to which way the airline industry is going. There is a rash of new low-cost airlines, many of which want nimble, short-haul Boeing 737s, or something similar. As for long-haul flights, some airlines value the number of seats above all, others fuel efficiency. On Sunday July 18th, on the eve of Farnborough, Boeing was able to boast that it had received downpayments for 200 7E7s—from Japan’s ANA, Air New Zealand, First Choice and Blue Panorama, among others. Two days later, Airbus crowed about a 24-strong order from Etihad Airways, the national airline of the United Arab Emirates, including four A380s.Overall, Airbus’s order book continues to look better than Boeing’s.

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