Company Watch - Boeing

Airguide Online, Sept 18, 2006

Edited by Aram Gesar, edit@AirGuideOnline.com For more global news, data, analysis and features, please go to: http://www.AirGuideOnline.com/professional.htm Sep 18, 2006

Aeroflot may double its planned $3bn purchase of 22 long-range airliners, it has said. Aeroflot's board has discussed offers for the Boeing 787 Dreamliner and the Airbus A350 XWB model. Aeroflot's fleet of 90 passenger aircraft, much of which is made up of aging Soviet-designed models, is in serious need of renewal, putting the company under pressure to make up its mind after sitting on the order for a year. The carrier could split the order between the two manufacturers. http://www.aeroflot.ru/eng Sep 17, 2006

Aeroflot announced yesterday that it intends to split its order for 44 250/300-seat aircraft between the 787 and A350 XWB. The number of aircraft is double the original stated requirement. The split order follows what is perceived to be a new balanced approach to Russia's relationship with Boeing and Airbus. Aeroflot had indicated a preference for the 787 prior to the re-launch of the A350 in June and Vneshtorgbank's purchase of 5% of EADS last week. Sep 13, 2006

Hainan Airlines ordered 15 additional 737-800s, completing the distribution of the 150-aircraft order placed by China Aviation Supplies Import and Export Group, Boeing announced yesterday. The 150 737-700s/-800s are worth approximately $10 billion at list prices and will delivered to Air China (25), China Eastern Airlines (20), China Southern Airlines (30), Shandong Airlines (12), Shanghai Airlines (13), Shenzhen Airlines (10), Xiamen Airlines (15) and Hainan (25) between this year and 2010. Sep 15, 2006

Boeing maintained its bullish air cargo outlook, projecting 6.1% annual average worldwide airfreight growth over the next 20 years in its World Air Cargo Forecast 2006/07 released this week. While long-term growth potential is strong, traffic growth last year and in 2006 has been slow. After an explosive 12% surge in 2004, world air cargo traffic expanded only 2% in 2005 and 3.1% in the first half of this year. "Much of this recent deceleration can be attributed to the rise in jet fuel prices since late 2004," Boeing wrote in the forecast, adding that "positive yet hesitant growth characterizes the market for 2006." Rising fuel prices "diverted some traffic that otherwise would have moved by air cargo channels to less expensive maritime trade lanes." Sep 15, 2006

Boeing finalizes Chinese orders. Boeing has finalized orders for 150 airliners from eight Chinese carriers. The orders are worth a total of $10 billion, based on list prices. Sep 15, 2006

Boeing said growth in Asian air cargo markets will exceed previous forecasts, with the domestic Chinese and intra-Asian markets expanding 10.8% and 8.6% per year respectively. Asia also will fuel growth on key trade lanes, it said, predicting that Asia-North America air cargo traffic will average 7.1% annual growth followed by Europe-Asia's 6.9% yearly rise. "More mature markets, such as North America and intra-Europe, will grow more slowly than the world average, as will routes involving Latin America and the Middle East." Overall, Boeing predicts the world freighter fleet will increase to 3,563 from the current 1,789 by 2026, with the greatest growth in widebody freighters such as the 747, 777 and 767. Of the 2,983 freighters predicted to join the fleet, 1,209 will be replacements for retired aircraft and 1,774 for growth. More than 75% will come from passenger/combi-to-freighter modifications, while 766 will be new production freighters. Sep 15, 2006

A Boeing official said yesterday that the manufacturer has had "serious" talks with Emirates and "11 or 12 other" airlines regarding the 787-10, the not-yet-launched stretch version of its next-generation aircraft that would seat more than 300 passengers. Sep 14, 2006

Alan Mulally's departure as president and CEO of Boeing Commercial Airplanes will have minimal impact on operations. Successor Scott Carson is "not quite as rambunctious" as the energetic Mulally but has been with the company for 34 years and brings "continuity" to BCA leadership. "A lot of people will miss Alan because of his personality, but from a business point of view I don't think it will have a great impact," he said. Sep 14, 2006

Boeing said that world air cargo growth is expected to expand at an average annual rate of 6.1 percent during the next two decades, with a three-fold increase in worldwide air freight. The information is included in Boeing's World Air Cargo Forecast 2006/2007, released today at the International Air Cargo Forum and Exposition 2006. Boeing has published the World Air Cargo Forecast, widely acknowledged as the definitive industry forecast of worldwide air cargo traffic growth and freighter aircraft demand, as an individual report since 1986. The new forecast is available here Sep 13, 2006

Boeing expects that the growth of Asian air cargo markets will exceed the expectations of the forecast from two years ago, with the domestic Chinese and intra-Asian markets expanding 10.8 percent and 8.6 percent per year, respectively. In addition, Asia- North America will average 7.1 percent and Europe-Asia will average 6.9 percent. More mature markets, such as North America and intra-Europe, will grow more slowly than the world average, as will routes involving Latin America and the Middle East. Europe-Southwest Asia will experience slightly higher than average growth, at 6.2 percent. Sep 13, 2006