Airbus Posts Record 20% Gain in New Orders in 1998

Airbus Industrie said Monday that firm orders for its jetliners soared 20% to 556 in 1998, a record for the European consortium that has been steadily narrowing the gap with rival Boeing Co.

Airbus accounted for 46% of commercial aircraft orders booked last year as it won contracts from new customers, including British Airways. The orders are worth $39 billion, 30% higher than in 1997. Boeing’s 1998 orders were worth an estimated $42.1 billion.

Although Airbus’ performance represents a milestone in its 28-year history, competition for orders is set to intensify this year as aircraft orders start to decline.

Airbus could suffer a “significant” downturn in orders for 1999, said John Leahy, a senior vice president. However, the consortium had 174 commitments (orders under discussion) in 1998, which could help offset any slowdown in orders, Airbus President Noel Forgeard said.

Seattle-based Boeing, which has also predicted a slowdown in sales this year, recently released figures showing it received 656 firm orders in 1998, up 5% from 1997. Based on list prices, the total value of Boeing’s orders fell from $42.8 billion in 1997, mostly because of the recession in Asia.

Asia has traditionally accounted for about 30% of Boeing’s backlog, compared with 15% for Airbus. And orders for its bigger and more expensive 747s were hurt more than orders for smaller jetliners.

Airbus sales last year were strong in Latin and North America, Europe and the Middle East, while the group continued to further its presence in Asia despite the ongoing economic crisis in that region.

Airbus is a partnership among Aerospatiale of France, British Aerospace, DaimlerChrysler Aerospace and Spain’s CASA.

Separately, Boeing said it agreed to launch 28 satellites for Globalstar Telecommunications Ltd., which is 42% owned by New York-based Loral Space & Communications Ltd. Although terms of the contract weren’t disclosed, Boeing typically gets about $55 million per Delta launch, analysts said.