Boeing competing for $15 billion jet order
Any advantage to the aircraft maker will set it on track to reach 40% global market share by 2014.
The aircraft manufacturer is competing with Airbus for the deal -- worth about $15 billion at list prices -- and analysts speculate that a split-order is the most likely outcome. If Boeing manages to secure exclusivity, however, it would be the latest in a string of high-profile coups for the manufacturer, continuing a trend which could send its global market share above 40%.
Downturn fails to dent demand
The ongoing economic uncertainty may have forced airlines to cut capacity, but for Boeing and Airbus there is little evidence of a slowdown in demand. High oil prices have piqued customers' appetites for more fuel-efficient fleets, leading to several large scale deals -- including a 460-plane order by American Airlines (AMR).
Last month alone, Boeing secured contracts to deliver 50 long-range Boeing 777s to UAE's Emirates Airlines and 230 short-haul jets to Indonesian carrier Lion Air. Each deal is worth about $20 billion at list prices, and they include options for several hundred more jets.
According to its own conservative estimate, Boeing expects global demand for commercial aircraft to total 33,500 units between 2011 and 2030. Having delivered 1,270 commercial aircraft last year, we believe the manufacturer will capitalize on this growing demand for fuel-efficient models by raising output steadily between now and at least 2018. Our chart below illustrates how its accelerating production line activity contributes to a Trefis price estimate of $90.
While aircraft deliveries look certain to rise, Boeing's market share appears somewhat more precarious. In addition to rising competition from Brazilian, Canadian, Chinese and Russian manufacturers, Boeing remains locked in a head-to-head struggle with Europe's Airbus for dominance in the long-haul and short-haul sectors.
Both manufacturers have suffered setbacks in the long-haul sector -- with the 787 Dreamliner delivering three years late, and the A350 program now delayed by six months -- which makes securing a lead in the short-haul market all the more crucial. Given that United operates an Airbus fleet whereas Continental flies Boeing, analysts will be watching closely to see who the newly merged entity favors in upcoming orders. Any advantage to Boeing will set the U.S. manufacturer well on its way to reaching 40% global market share by 2014.
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You do realize that Boeing aircraft make up almost 80% of United's fleet, and that United has over 100 Boeing aircraft on order compared to 25 on order for Airbus. I don't think you should be targeting United as a company that's not supporting US manufacturing.
Go back and read the article. It says "Given that United operates an Airbus fleet "
Also I went to the Boeing site and looked up orders through Nov 29th. United does not show on that list????????
You must be a United employee.
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