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Aviation History
1996
1996 - 0059.PDF
HEADLINED Boeing re-asserts its lead in recovering airliner market KEVIN OTOOLE/LONDON BOEING RE-ASSERTED its dominance of world airliner markets in 199 5, revealing a total of 346 new orders for the year, more than treble the result of either Airbus or McDonnell Douglas (MDC). Ron Woodard, president of Boeing's Commercial Airplane Group, is upbeat about the oudook for 1996. "Our goal is to increase new order volume, and significant ly higher targets are in place," he said when revealing die year-end figures in Seattle. The result is in marked contrast to 1994, when Boeing reached a low point of 120 new orders, com ing second to Airbus for die first time in its history, albeit in a heavily depressed market. Woodard is con fident that the group is now back on track, with a 60% market share in jet-airliner orders. Airbus, which ended 1995 show ing 106 new orders for the year, is philosophical about Boeing's resur gence, pointing out tliat the com parison looks more balanced if it JET AIRLINER ORDERS -1995 AIRBUS Aircraft A300-600R A310-300 A319 A320 A321 A330 Orders 2 4 30 39 12 9 Value* $0.2bn $0.3bn $1.2bn $1.9bn $0.7bn ll.lbn A340 10 $1.3bn Total 106 $7.0bn BOEING Aircraft 737-3/4/5 737-6/7/8 747-400 757 767 777 Total Orders 47 129 39 13 26 92 346 Value $1.8bn $5.0bn $6.5bn $0.8bn $2.5bn $14.6bn S31.2bn MCDONNELL DOUGLAS Aircraft Orders MO-11 MD-80/90 MD-95 Total 11 53 50 114 Value* $1.2bn $1.8bn $l.lbn $4.1bn *values are estimates based on current catalogue prices excludes areas ofthe market where the consortium does not compete — ie, above 335 seats and below 124 seats. Boeing was also helped by die timing of its new-aircraft launches. Orders for the new-generation 737 forged ahead, helped by a series of hard-fought battles in Europe, while a renewed round of ordering for the 777, including the substan tial Singapore and Saudia purchas es, added more dian 90 aircraft. Orders for the 747-400 also recov ered, fuelling interest in new ver sions ofthe aircraft. The most striking turnaround of 1995 was from MDC, which ended the year with 114 new orders. In 1994, the manufacturer had amassed little more than 20 orders and nearly as many cancellations. The MDC total, however, relies heavily on the 50-aircraft deal with Valujet to launch the MD-95, as well as the 32 aircraft ordered by Saudia. Without diese, MDC's underlying business was 32 aircraft. Overall figures from die big three jet-airliner manufacturers total some 566 aircraft, more than doubling the depressed total of 268 recorded in 1994. The level of can cellations is also expected to be much lower when the fall figures are released. • Airbus pressured to speed up A3XX studies JULIAN MOXON/PARIS ASTRING OF major airline orders involving the Boeing 747/777 combination is increasing pressure on Airbus Industrie to "accelerate its studies" into a rival programme known as die A3XX. "We can't leave die 747 to domi nate the market," says an Airbus source, "so we are intensifying our work on design and development of die A3XX" — a message under stood to have been reinforced by Jean Pierson, die Airbus consor tium managing director, during a New Year briefing to staff in Toulouse. Despite some recent sales of its 290-to 440-seat A330/340, sales of high capacity widebodies have recendy been dominated by 141 success may hasten A3XX Boeing. The lack of a 747 competi tor leaves Airbus able to compete on just 70% of die overall airliner market, and widi market predic tions showing increasing emphasis on die top end of die capacity scale, Airbus stands to see its market cov erage reduced to 60%, or even 50% over die next ten years. The consortium is actively en gaged in looking for partners to help shoulder the $8 billion launch cost of die all-new 450-to 600-seat A3XX. The launchdecision could be made by late 1997 or early 1998. Design of die A3XX is effectively settled: it centres on an ovoid fuse lage section of similar lengdi to tliat of die 747, widi a slightly greater wingspan. Airbus has consistently said diat the new aircraft must have operating costs at least 15% lower tlian those of die 747. This may be difficult if Boeing goes ahead widi plans to increase die passenger capacity of its market leader. Ron Woodard, president of Boeing's Commercial Airplane Group, confirmed on 4 January diat die company is actively explor ing two new versions of die 747 widi a new wing, longer range and capacity for more passengers. • Northrop Grumman wins the battle to buyWestinghouse Defense Electronics NORTHROP GRUMMAN is to acquire die defence-elec tronics and air-traffic-control (ATC) equipment businesses of Westinghouse for S3 billion. The aerospace and defence concern won a bidding war against a list of rivals which reportedly also included Hughes Aircraft, Raytheon, Lock heed Martin and Loral. Nordirop Grumman says tliat it expects to close the deal by 31 March, once Governmental and regulatory reviews are completed. Westinghouse elected to sell die operations to help pay for its recent $5.4 billion purchase of CBS, the US television network. "This acquisition will place Nordirop Grumman in a signifi cant growdi mode for die future. Northrop Grumman's total rev enues by die year 2000 could easily exceed $10 billion," says Kent Kresa, die firm's president and chief executive. The Westinghouse unit, die lat est victim of a string of consolida tion deals in die US aerospace and defence industry, employs 12,000 workers. Sales in 1995 are expected to total $2.6 billion. Products include radars for die Lockheed Martin F-16, McDonnell Douglas F/A-18, Boeing E-3 airborne warning and control system and die Nortlirop Grumman E-8 Joint STARS. It also provides a range of ATC radars, electronic countermea- sures, tactical communications eq uipment, electronics for undersea applications and marine products. Nordirop Grumman, on die other hand, has 37,000 workers and expects to report 1995 sales of about $6.8 billion, covering areas such as defence electronics, surveil lance aircraft, aerostructures and missiles. It was formed in May 1994, following Northrop's acqui sition of Grumman. Later that year, the company completed die take-over of Vought Aircraft. The acquisition is expected to make Northrop Grumman the fourth-largest aerospace compa ny in the USA. • FLIGHT INTERNATIONAL 10 - 16 January 1996 5
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