Boeing vs. Airbus 2006 orders January 2007

Airbus/Boeing — competitive positions reversed

n 2006 Boeing recorded 1,044 net orders, 42 more than 2005 and, crucially, 254 more net orders than Airbus, which recorded 790 net orders. Boeing's record 2006 performance was heavily supported by 737 orders, which accounted for almost 70% of the manufacturer's net orders. Widebody sales included 157 orders for the yet-to-be-launched 787 series aircraft, 76 orders for the 777, and ten 767 orders. As Richard Aboulafia, Teal BOEING ORDERS 2006

737 747 767 777 787 Total Air Berlin 75 75 Air France 1 1 Air Europa 16 16 Cargolux Airlines 2 2 First Choice Airways 2 2 Futura 3 3 Icelandair 2 2 KLM Royal Dutch 9 1 10 Lufthansa 20 20 Monarch Airlines 6 6 Ryanair 42 42 Sky Airlines 3 3 SkyEurope 5 5 Travel Service 2 2 European Total 155 22 0 2 10 189 AirTran Alaska Airlines Atlas Air Aviation Capital Group Boeing Business Jet CIT Leasing Corp. Continental Airlines Delta Air Lines Fedex GECAS Guggenheim Av. Partners ILFC Nakash Group Pegasus Airlines Pegasus Av. Finance Southwest WestJet N.American Total 25 13 12 14 14 26 10 15 30 4 6 6 2 82 3 229 20 3 2 2 2 4 5 5 13 25 13 12 14 23 5 39 10 15 30 7 10 2 6 2 82 3 298 18 1 22 3 44

I

Group analyst, puts it " [Boeing] have gone from uncertain future and second place to unquestioned dominance". Boeing and Airbus have sold more commercial jets in the past two years than at any time in aviation history. Orders placed in Asia, and in particular China, were very robust. Boeing recorded 284 orders in Asia, with a 2:1 narrowbody to widebody ratio. Airbus fared better, recording 344 orders, with CASGC ordering 150 A320 family airAir China Air Pacific Cathay Pacific China Eastern Airlines China Southern Airlines Hainan Airlines Jet Airways Korean Air Lion Air Nippon Cargo Airlines Qantas SALE Shandong Airlines Shanghai Airlines Shenzen Airlines Singapore Airlines SpiceJet Virgin Blue Airlines Xiamen Airlines Asian Total 737 747 767 777 787 Total 25 25 5 5 8 6 2 16 16 10 10 19 19 10 10 24 4 5 15 30 30 2 2 5 45 50 10 10 12 12 8 8 5 5 20 20 10 10 9 9 11 11 174 13 0 17 80 284 10 1 6 10 9 2 22 60

Air Sahara 10 Buraq Air 1 Egyptair 6 Emirates Kenya Airways LoadAir Cargo Qatar Airways Africa/M.East Total 17

10 9 2 12 0 5 8 2 22 22 9

Unidentified Total 119 5 Gross Total 733 72 Changes -4 2006 Net Total

Source: Boeing

16 30 175 77 160 1050 -1 -3 -6 1044

29 2

Aeromexico 16 Copa Airlines 1 Gol Airlines 22 LAN Airlines L. American Total 39

3 3

Jan/Feb 2007

craft. Other significant orders in 2006 included an 82 737 order from Southwest, Air Berlin ordered 75 and Ryanair 42 of the same model. Apart from CASGC, main orderers of Airbus were the LCCs easyJet and AirAsia, with US low cost start-up Skybus ordering 65 A319s. The sales performance at Airbus reflects its high-profile problems last year. Wiring problems plagued production of the A380, delaying delivery slots by two years and costing Airbus at least $3.6bn. Airbus has booked orders for 166 A380s, but only took under 20 orders in 2006, with a notable ten-plane cancellation from Fedex. Airbus indecision over the A350XWB, as well as potential customer concerns that it did not measure up to the 787, created a major advantage for the 787, which now has 448 orders booked to date. Notwithstanding its problems, Airbus has performed well in the final quarter of 2006 to finish with a 43% overall net order share, against a mid-2006 position of less than 20%. In developments likely to figure in the orderbook battle, Airbus announced the industrial launch of the A330F, creating new competition in the midsized freighter market where Boeing has prevailed with virtually no competition in the past. The A330F will go up against the older 767 and newer 777 freighters and will be more capable than the 767 and cheaper than the 777, according to Airbus. On the production side, both companies are predicting 440-450 deliveries for 2007. The industry's all-time peak of 900 aircraft shipped in 1999 looks set to be equalled. A repeated combined total of around 900 units indicates another all-round record year is in store for 2007.

AIRBUS ORDERS 2006

Aegean Aercap Aer Lingus Air One Blue Wings Boutsen Aviation Czech Republic easyJet Finnair Grupo Marsans Jetalliance Lufthansa NIKI RBS Aerospace Stumpf Group Wizz Air European Total CIT Frontier Airlines GECAS ILFC Pegasus Aviation Skybus US Airways N.American Total Air Caraibes InterJet TAM Linhas Aereas Latin American Total Air Asia Air Blue Air China CASGC Go Air Indian Airlines Kingfisher Airlines SALE Silk Air Singapore Airlines Tiger Airways Qantas Asian Total Afriqiyah Airways Air Mauritius Alafco Middle East Airlines National Air Services Tunis Air Africa/M.East Total Private Customer Unidentified Total Gross Total Cancellations Net Total

Source: Airbus

A318 A319 A320 A321 A300 A330 A340 A350 A380 3 20 2 2 5 16 4 2 2 52 3 9 12 1 1 5 10 15 5 7 1 4 6 1 20 1 67 63 19 0 39 10 9 0 5 1 3 65 0 74 15 10 16 26 40 6 9 40 19 60 10 4 20 7 19 8 0 72 3 155 6 6 4 2 2 1 4 1 8 8 12 253 12 2 39 312 0 0 5 104 0 0 0 0 8 1 5 104 0 0 0 15 0 0 0 15 0 0 0 17 4 70 0 6 25 3 1 5 0 8 17 9 50 20 5 4 7 7 0 19 1 12 12 3 3 6 7 0 6 0 4 6 2 3 10

Total 3 20 4 5 20 2 2 52 12 12 2 42 1 10 1 20 208 19 6 3 13 8 65 7 121 1 10 37 48 40 6 9 150 10 43 5 20 11 28 8 14 344 12 1 6 8 2 1 30 12 61 824 -34 790

3 6

4 2

Jan/Feb 2007