New orders for Boeing cut Airbus's advantage

International Herald Tribune ^ | April 14, 2005 | Mark Landler

[Righty_McRight]

787's popularity adds to pressure on A350

FRANKFURT A funny thing happened while the United States was crying foul over Europe's subsidies to Airbus: Boeing, the embattled American manufacturer in need of Washington's helping hand, suddenly started booking orders for planes.

A spate of orders, and expected orders, for Boeing's new 787 has given it fresh momentum. What seemed last year like a lopsided competition - with Airbus rolling up more orders and rolling out more new planes than Boeing - now seems like a genuine duel.

On Sunday, Korean Air announced an order for 10 Boeing 787s, the midsize, fuel-efficient jet dubbed the Dreamliner.

Northwest Airlines is close to a deal for as many as 18, according to people close to the talks. After a slow start, Boeing says it has 203 orders and commitments for the plane.

It is not clear whether Boeing's success will change the course of the trans-Atlantic dispute, which entered a tense lull after a deadline to take the matter to the World Trade Organization expired Monday.

Some analysts say the 787's recent strides will make subsidies all the more imperative for Airbus as it develops the A350, a midsize rival to 787.

[Righty_McRight]

Had trouble with cut/paste so had to excerpt.

[Zeppelin]

So much in subsidies, yet still not able to pull far ahead? Could it be due to an inferior product?

Watch the EU throw more money at Airbus, to no avail. I would be thrilled to see them waste their subsidies while Boeing rolls out plane after plane.

Seems to be yet another example of how American ingenuity is superior to socialist economic tactics.

[carumba]

I overheard a barber shop conversation. The guy says that most of the major airlines lease the planes. They have no assets to liquidate if they go under. Delta for instance continues to fly but would have been sold to the highest bidder if it were another industry. Boing and the banks continue to accept debt restructuring in hopes that they pull out of their nose dive. Otherwise it will all be turned over to Jetblue and Southwest for instance.

[Paleo Conservative]

Airbus only pulled ahead of Boeing after 9-11 when Boeing slowed down its production and US airlines deferred orders.

[goarmy]

"Seems to be yet another example of how American ingenuity is superior to socialist economic tactics."

AMEN. U-S-A! U-S-A!

[Wiz]

Ping

[libertylover]

I have yet to fly on an Airbus plane that could keep the temperature in a comfortable range.

[Zeppelin]

***AMEN. U-S-A! U-S-A!***

AMEN AMEN!

I always buy American whenever possible. I really think we could begin to close the trade deficit if we started a national advertising campaign to promote buying American. (The only thing I like about unions is that they encourage you to "spend it where ya earned it.")

[Zeppelin]

***I have yet to fly on an Airbus plane that could keep the temperature in a comfortable range.***

Why didn't you just open a window? =P

[norton]

"Then, too, Airbus may need to dispel some doubts about the A350. A senior executive at a major Asian airline, speaking on the condition of anonymity, said he had concerns about its speed and range. Airbus has since addressed those concerns, this executive said."

Oh, Yeah; and the tail falls off.

(Oops!)

[q_an_a]

scroll down the page to the "Print" version and you can see the whole story on one page. Saves time @ IHT.