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Paris Air Show: Airbus wins on orders, but Boeing wins widebody sweeps
AIRBUS took home a greater piece of the pie at this year's Paris Air Show, but Boeing's favourable order combination should boost its earnings, said New York financial portal Seeking Alpha.
"What's more important for Boeing is that it was able to use the air show to its advantage in getting orders for the 777 and 747,?said the Seeking Alpha report.
Besides striking deals on the 777, Boeing secured a useful order from Volga-Dnepr for twenty 747-8 freighters $7.4 billion at list price. The cargo operator's commitment and a switch from Airbus, is a sign of changes in the cargo market.
"Airbus once again edged Boeing out with orders for 421 aircraft, thanks to its last minute US$13 billion deal for 110 A321s from Budapest discount carrier Wizz Air," said Seeking Alpha.
"The deal was the largest single order at the event. Airbus booked orders worth $57 billion and Boeing recorded orders for 331 planes valued at $50.2 billion at list prices," it said.
"A closer look at the orders would reveal that Boeing has bagged more wide-body deals compared with Airbus. Airbus's order numbers were primarily pulled by its narrow body planes.
"High priced wide-bodies are more lucrative to plane makers because of its higher margins compared with narrow body jets," the report said.
As a result, Boeing is going to make more dollars out of the orders. Also, this is welcome news for the aircraft maker, particularly at a time when it's considering slashing the production of one of its key cash generators, the 777.
But after signing orders for the wide-body programme, Boeing believes it could avoid a production cut. Orders infused new life into the 777.
Combined orders for Boeing and Airbus came in at a staggering $107 billion for 752 aircraft, though it was below the last Paris Air Show where the two had combined orders of $134 billion.
This did not come as a surprise since the industry was already expecting an order decline. Boeing and Airbus together have epic backlogs of more than 12,000 planes that will take around eight to nine years of production.
This means that customers placing orders would have to wait for years to take the delivery. Boeing and Airbus have been thinking of ramping up production rates to timely manage the mounting order books, the report said.
"What's more important for Boeing is that it was able to use the air show to its advantage in getting orders for the 777 and 747,?said the Seeking Alpha report.
Besides striking deals on the 777, Boeing secured a useful order from Volga-Dnepr for twenty 747-8 freighters $7.4 billion at list price. The cargo operator's commitment and a switch from Airbus, is a sign of changes in the cargo market.
"Airbus once again edged Boeing out with orders for 421 aircraft, thanks to its last minute US$13 billion deal for 110 A321s from Budapest discount carrier Wizz Air," said Seeking Alpha.
"The deal was the largest single order at the event. Airbus booked orders worth $57 billion and Boeing recorded orders for 331 planes valued at $50.2 billion at list prices," it said.
"A closer look at the orders would reveal that Boeing has bagged more wide-body deals compared with Airbus. Airbus's order numbers were primarily pulled by its narrow body planes.
"High priced wide-bodies are more lucrative to plane makers because of its higher margins compared with narrow body jets," the report said.
As a result, Boeing is going to make more dollars out of the orders. Also, this is welcome news for the aircraft maker, particularly at a time when it's considering slashing the production of one of its key cash generators, the 777.
But after signing orders for the wide-body programme, Boeing believes it could avoid a production cut. Orders infused new life into the 777.
Combined orders for Boeing and Airbus came in at a staggering $107 billion for 752 aircraft, though it was below the last Paris Air Show where the two had combined orders of $134 billion.
This did not come as a surprise since the industry was already expecting an order decline. Boeing and Airbus together have epic backlogs of more than 12,000 planes that will take around eight to nine years of production.
This means that customers placing orders would have to wait for years to take the delivery. Boeing and Airbus have been thinking of ramping up production rates to timely manage the mounting order books, the report said.
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