Airbus may beat Boeing on orders 'n deliveries

Font Size

Print

Feedback

Email

Discuss

Related Articles

SpiceJet to receive $65 mn in a week as 2nd tranch...Air India needs up to Rs 1,000 cr infusion: PatelAir India employee gets 2-yr RI for cheating'Global airlines in deep crisis, 26 go bust'

Airbus Chief Executive Thomas Enders is on Wednesday expected to announce that 2007 was a record year for passenger jet orders and deliveries, allowing the European planemaker to steal the lead back from US rival Boeing Co.

But the healthy order book doesn't make up for another feature of 2007 dogging Airbus and its parent company, European Aeronautic Defence & Space Co NV: the strong euro.

The dollar's 11-per cent fall against the euro last year cut into Airbus' revenue.

The European planemaker sells its jets in dollars, though many of its costs remain in euros. It claims to lose more than USD 1.48 billion for every 10 cent rise in the euro.

"Enders will be seeking to strike a balance between being pleased at having the most orders and making it clear that just because Airbus booked a lot of orders, it doesn't mean the company is in perfect shape," said HSBC analyst Edward Stacey.

In Wednesday’s presentation, Enders may give more details on EADS Chief Executive Louis Gallois' November assertion that the weaker dollar means Airbus needs to find an extra USD 1.48 billion in cost savings.

That's in addition to a restructuring programme, dubbed Power8, which aims to recoup USD 2.95 billion in savings by 2010 and cut 10,000 jobs.