Portland Press Herald / Maine Sunday Telegram
Jet orders trickle in at industry air show
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Boeing comes up empty as slower military sales and the recession force it to focus more on exports.
By EMMA VANDORE and GREG KELLER, The Associated Press June 16, 2009
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The Associated Press
The 48th Paris Air Show got off to a gloomy start Monday – weather and otherwise – at Bourget airport near Paris.
The Associated Press
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The Associated Press
An Italian Aeromacchi-made M-346 fighter trainer jet performs a demonstration flight during opening day at the Paris air show, while an Alitalia plane soars in the background.

LE BOURGET, France — Boeing didn't score a single jet order and Airbus didn't fare that much better at Monday's opening day of the Paris Air Show, where the mood among the world's aviation industry leaders was as damp as the weather.

Worries about the unexplained crash of Air France Flight 447 hung in the air as airlines and plane manufacturers gathered at the 100th anniversary of the world's first and largest air show. Pouring rain at the Le Bourget air field, combined with plunging revenue, layoffs and unprecedented losses in the industry, set the stage for a modest gathering.

While defiant Boeing Co. executives said the overall prospects were robust, the Chicago-based aviation giant reported no new orders Monday. Airbus announced just one, from Qatar Airways, for 24 jets from the A320 family worth $1.9 billion.

During the opening day of the industry's previous major show, in Farnborough, England, a year ago, airlines from oil-rich Middle Eastern countries booked orders for about 150 planes worth more than $25 billion.

Gulf-based carriers were among the few pulling out their checkbooks this year.

Qatar Airways' chief Akbar al-Baker announced firm orders for 20 single-aisle A320s and confirmed a commitment for four A321 jets announced last year at the Farnborough Air Show. He said the deal announced Monday is worth $1.9 billion, which is about the same as the list price. Airlines, however, usually negotiate steep discounts to catalog prices, particularly during grim economic times.

Meanwhile, Rolls-Royce PLC signed a $1.5 billion order with Gulf Air to supply engines for the Bahrain-based airline's new Airbus A330 long-haul aircraft. The British aircraft engine manufacturer will supply Trent 700EP engines to power 20 Airbus A330 aircraft, with deliveries beginning in 2012.

Russian plane-maker Sukhoi, peddling its SuperJet 100 at the air show, netted promised orders from Hungary's Malev for 30 jets worth up to $1 billion. But it was a commercial sleight of hand because Malev was bought by Russian state-owned bank Vnesheconombank in a high-profile deal earlier this year.

The SuperJet 100, seen as key to Russia's attempts to revitalize its civilian aircraft industry, is designed to fly both regional and medium-haul routes. SuperJet International is a joint venture between Italy's Alenia Aeronautica and Russia's Sukhoi Civil Aircraft.

Canada's Bombardier announced it had won, confirmed or converted a total of 35 firm orders for its CRJ1000 NextGen jets by Spanish regional carrier Air Nostrum, in deals worth a total of $1.75 billion.

Boeing warned last week not to expect a flurry of orders. Its defense business is hoping to make up for lagging commercial sales, and weakening U.S. military sales, through rising international exports.

On Monday, Boeing Integrated Defense Systems announced the launch of a new Unmanned Airborne Systems division, which will group all of the company's drone projects to better compete for military contracts. The formation of the new division reflects the growing interest by various air forces in unmanned aerial vehicles for everything from high-altitude surveillance and coastal patrols to tracking natural disasters.

Boeing's commercial aircraft chief sought Monday to strike a positive tone. "At this point it appears to us that the economic conditions have bottomed," said Scott Carson, president and chief executive of Boeing's commercial aircraft division. "If they have bottomed and a recovery comes next year, I think we have a shot at getting through."

Boeing recently cut its outlook for the commercial aircraft market for the first time in at least a decade, which Carson said was mainly driven by the drop in freight traffic because of the global recession.

Carson said long-term prospects for the industry "are as robust as they have ever been."

However, he disappointed hopeful attendees who thought...


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