Business

October 28, 2013

Airbus promotes its US links on Boeing’s turf

Joan Lowy
Associated Press

Airbus, headquartered in France, is pitching its value to the U.S. economy as it takes its battle for dominance in the global airplane market onto rival Boeing’s home turf.

Last week for the first time Airbus is holding its annual meeting with its suppliers from around the world in Washington instead of at home in Toulouse. It’s the company’s way of underscoring that 42 percent of its procurement spending – about $13 billion in 2012 – goes to U.S. companies.

Earlier this year, Airbus broke ground on a $600 million assembly plant for its popular A320 airliner in Mobile, Ala., the company’s first such facility in the U.S. A poster at the company’s offices only a few blocks from the White House promotes the A320 as made in America.

Airbus currently claims less than 20 percent of the U.S. commercial airplane market, but is aiming for 50 percent – roughly the same as its market share worldwide, Airbus CEO Fabrice Bregier said in an inteview Oct. 24.

There is room to maneuver to do better in the United States, he said. We care about this country, we have extremely good partners here, we are competitive and we want to grow with them.

Airbus is having some success with its campaign for the U.S. market, Bregier said, noting that Delta Air Lines and JetBlue have ordered A320s.

This is first of all because of the quality of the product, but also because we are seen as a U.S. citizen and assembling our aircraft here in the United States, he said.

Boeing officials, however, scoff at Airbus’ attempts to emphasize their value to the U.S. economy, noting that Boeing employees 160,000 workers across the country, about half of them involved in commercial airplanes and the rest mostly in the company’s defense business.

Their starting up of one very small plant in Mobile versus our 160,000 employees in the United States, it’s a significant difference, said John Wojick, senior vice president, global sales & marketing, for Boeing Commercial Airplanes.

Both companies draw on many of the same suppliers scattered all over the world. A significant portion of Boeing’s 787 parts, for example, are made in Japan. The company also has suppliers in Europe.
The U.S. is the world’s largest airplane market, but it is a mature market and not growing nearly as fast as Asia, Wojick said.

Boeing reclaimed the title of world’s largest airplane maker from Airbus last year, delivering 601 planes in 2012 to Airbus’ 588 deliveries. But earlier this month, Airbus secured its first ever order from Japan Airlines, a deal that undermines Boeing’s long-held dominance of the Japanese aviation market.

So far this year, Airbus has sold slightly more planes than Boeing, but both companies are having a very good year, Wojick said. Boeing will again deliver more planes this year than Airbus, he predicted.

Bregier said he anticipates Airbus will regain the lead on deliveries around 2017 or 2018, when the company ramps up production of the A350, a family of long-range, two-engine, wide-body jet airliners due to come into service next year.

The contest between the two aircraft makers is about a lot more than bragging rights. Boeing forecasts that over the next 20 years the global demand for new airplanes will exceed 35,000 aircraft valued at $4.8 trillion.

The two companies are also challenging each other in legal arenas. They are locked in an international trade dispute at the World Trade Organization in Geneva, each claiming that the other receives illegal state subsidies. AP




All of this week's top headlines to your email every Friday.


 
 

 

Raytheon wins $46 million contract for South Korean Global Hawk ground stations

Raytheon has been awarded a contract valued at up to $45.7 million by Northrop Grumman Aerospace Systems for ground segments in support of four Global Hawk unmanned aircraft systems recently purchased by the Republic of Korea. Under this contract, Raytheon will deliver one building-based and one mobile ground segment to locations in South Korea. Work...
 
 

TOW 2A RF missiles successfully fired from helicopter

In the first of its kind launch, Raytheon fired tube-launched, optically-tracked, wireless-guided 2A radio frequency practice missiles from an AH-1W Cobra attack helicopter during a December exercise.  Raytheon, working with the Naval Air Systems Command, fired two TOW 2A RF practice missiles at ranges exceeding 2600 meters. The two tests verified the missile’s capability to...
 
 
NG-growler2

Northrop Grumman delivers center/aft ‘shipset’ for first international EA-18G Growler

Northrop Grumman photograph Northrop Grumman mechanics perform final quality inspections on the center/aft fuselage shipset produced by the company for the first Australian EA-18G Growler. The subassembly will be delivered to B...
 

 

Boeing, ANA finalize order for three 787-10 Dreamliners

Boeing and All Nippon Airways (ANA) today finalized an order for three 787-10 Dreamliners, valued at approximately $900 million at list prices. With this order, originally announced as a commitment in January 2015, ANA becomes Boeing’s newest 787-10 customer and first airline in Asia to operate the entire family of 787 Dreamliners. “We truly appreciate...
 
 

Poland’s MESKO, Raytheon sign second letter of intent

In a move designed to collaborate and share advanced defense technologies, Raytheon’s Missile Systems business signed a Letter of Intent with MESKO, Poland’s leading missile and ammunition manufacturer. Areas of cooperation focus on Raytheon’s solutions for the KRAB howitzer precision fires and new Polish Attack Helicopter, including offset proposals and opportunities for MESK...
 
 

Airbus Group delivers first new UH-72A Lakota for Army initial-entry trainer mission

Airbus Group March 25 delivered to the U.S. Army the first UH-72A Lakota helicopter to come off the Airbus Helicopters Inc. production line configured for the Lakota’s latest mission, as the service’s initial-entry training helicopter. The aircraft will join seven Lakotas previously in the Army inventory that have already been modified to the training configuration...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>