Boe­ing loses world’s largest plane­maker crown to Air­bus

Muscat Daily - - BUSINESS -

Chicago, US - Boe­ing Co lost the ti­tle of world’s largest plane­maker as the 737 Max ground­ing sent the com­pany to its big­gest de­feat in a 45-year duel with Air­bus SE.

De­liv­er­ies tum­bled to just 380 jet­lin­ers last year, Boe­ing said in a state­ment on Tues­day. That was less than half of Air­bus’s tally of 863 planes.

For the first time in at least three decades, Boe­ing also fin­ished the year with neg­a­tive net orders by one mea­sure. The gross sales of 246 jets that it gar­nered were sur­passed by those taken off the books due to or­der con­ver­sions, can­cel­la­tions and an ac­count­ing ad­just­ment, Bank of Amer­ica Corp an­a­lyst Ron Ep­stein said in a re­port.

Boe­ing’s epic trounc­ing un­der­scored the depth of the Max cri­sis af­ter global reg­u­la­tors halted com­mer­cial flights and de­liv­er­ies of the model in March, fol­low­ing two crashes that killed 346 peo­ple. Air­bus’s vic­tory was its first since 2011 and 10th since 1974, when the Euro­pean com­pany’s A300 jet­liner made its com­mer­cial de­but.

Last year, Boe­ing shipped only 127 of its sin­gle-aisle 737 planes, lag­ging Air­bus’s nar­row­body to­tal of 690 jets. But the Chicago-based com­pany scored a win in twin-aisle jets, de­liv­er­ing 253 - 80 more than Air­bus.

Dream­liner flurry

Boe­ing fin­ished the year with a flurry of 787 Dream­liner ship­ments that will help bol­ster its cash. The com­pany handed over 45 of the mar­quee long-haul jets in the fourth quar­ter. That was five more than es­ti­mated by Cowen & Co an­a­lyst Cai von Ru­mohr, who said ‘the 787-driven de­liv­ery beat’ could add about US$1.5bn to rev­enue.

Boe­ing re­versed losses af­ter the re­lease of the data, which also showed a surge in de­liv­er­ies of satel­lites and mil­i­tary air­craft to 231 units from 98 a year ear­lier.

“Un­der­ly­ing de­liv­er­ies were strong out­side of the 737 Max,” Sheila Kahyaoglu, a Jefferies an­a­lyst, said in a note to clients.

Orders for the Max, Boe­ing’s best-sell­ing jet, have been dented by amid un­cer­tainty over when reg­u­la­tors will fi­nally clear the plane to re­sume flights.

Net of can­cel­la­tions and con­ver­sions, Boe­ing recorded a to­tal of 54 jet­liner sales com­pared with 768 for Toulouse, France-based Air­bus. In­clud­ing an ac­count­ing rule that re­stricts the rev­enue US com­pa­nies book from deals at risk of not ma­te­ri­al­is­ing, the Boe­ing tally shrank to neg­a­tive 87 orders for the year.

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