By Tim Hepher PARIS, Dec 10 (Reuters) – Airbus CEO Guillaume Faury conceded likely defeat in the annual order race against Boeing on Wednesday, saying it was possible Boeing would win for the first time in six years, helped by settlements over U.S. tariff disputes. Airbus remains ahead of its U.S. rival in deliveries and […]
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Airbus CEO says Boeing likely to win order race this year
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By Tim Hepher
PARIS, Dec 10 (Reuters) – Airbus CEO Guillaume Faury conceded likely defeat in the annual order race against Boeing on Wednesday, saying it was possible Boeing would win for the first time in six years, helped by settlements over U.S. tariff disputes.
Airbus remains ahead of its U.S. rival in deliveries and the pipeline of outstanding orders, Faury told France Inter.
Buoyed by strong demand for its 787 long-haul jet, Boeing on Wednesday posted 908 net orders after cancellations between January and November, compared with 700 for Airbus.
“The fact that we have been ahead on orders for five years means our order backlog is much higher than that of our main competitor,” Faury told the French radio station.
“But it is true that they have been helped by the American president as part of tariff negotiations with several countries, where plane orders became part of the resolution of trade disputes.”
TRADE TENSIONS WITH USÂ SUPPORT BOEING ORDERS
Analysts say several airlines either placed Boeing orders or timed previously planned order announcements to soothe trade tensions with the United States this year, particularly in Asia.
U.S. industry officials say the long-haul 787 is selling well regardless of trade matters. Airbus is leading on smaller jets, such as the A321.
Airbus orders have lagged for months, but Faury’s comments confirm a probable change in the ranking for new business, while Airbus is expected to retain its title as the world’s largest manufacturer through higher deliveries.
Asked about reports of a large pending order from China, Faury said he did not expect an imminent new order for hundreds of jets but spoke of clearances for previous orders.
On Wednesday, Airbus said it had secured Chinese agreement to go ahead with the delivery of 120 previously ordered jets.
Industry sources have said Airbus was banking on an order for up to 500 jets from China to meet its internal order goals. Beijing is in negotiations with Boeing for a similar package.
With China locked in fraught trade relations with the United States and Europe, Western analysts say it is expected to maintain a broad balance in jet imports to meet its growth after several years in which it was largely absent from the market.
China’s state buying agency did not respond to a request for comment.
Faury said a major software recall affecting 6,000 jets in the A320 family, which includes the A321, had been completed. The final number of jets needing attention was closer to 4,000 and all have now been fixed, he told France Inter.
(Reporting by Tim Hepher; Editing by Jan Harvey and Barbara Lewis)