MONDAY, AUGUST 30, 2004
Boeing-Airbus Asian rivalry heating up
AFP
SINGAPORE: The rivalry for Asian skies between US aerospace giant Boeing and European rival Airbus is heating up as premium airlines boost their long-range fleets and prepare for the arrival of super jumbos.
Boeing scored big last week when Singapore Airlines (SIA), whose aircraft choices are closely followed by rival carriers, announced it will buy up to 31 B777-ER long-range planes worth an estimated $7.35 billion.
Eighteen are firm orders for delivery between 2006 and 2010 while the rest are options.
"The competition is very aggressive at present," said Peter Harbison, managing director of the Australia-based Centre for Asia-Pacific Aviation. "It is particularly hot now because the Asian market is one of the markets in the world which is growing substantially."
Apart from Singapore, the other major Asia-Pacific markets are Australia, Japan, China and South Korea, with India fast rising as a key commercial aircraft buyer.
Bob Saling, Asia-Pacific spokesman for Boeing Commercial Airplanes, said the Chicago-based aircraft maker has the lead with a 72 per cent total market share in the region based on installed fleets. But industry analysts point out that Airbus entered Asia only in the 1970s.
The region now accounts for 35-40 per cent of Boeing's global sales of passenger jets, up from 30 per cent, after US carriers were sent reeling by the fallout from the September 11, 2001, terrorist attacks, Saling said.
"The competition in Asia is generally very intense," he told AFP, adding Boeing felt "very optimistic for the Asian aviation industry."
Boeing's largest Asian customers are Japan Airlines, All Nippon Airways, Singapore Airlines, Korean Air and Air China.
Boeing delivered 34 planes to regional carriers as of the third week of August this year. It still has a backlog of 286 planes on order from 22 airlines worth an estimated $34.5 billion at list prices.
Boeing is also banking on its futuristic B7E7 Dreamliner. Although the company appeared to have suffered a setback when Singapore Airlines chose not to place any orders for the 7E7, the Dreamliner programme has made some progress elsewhere in Asia.
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