US aviation giant Boeing Co might be forgiven for crowing over the crisis engulfing its bitter European rival Airbus SAS. Far from it.
Both the US company itself and industry observers say that an enfeebled Airbus presents paradoxical risks should Boeing find itself overwhelmed with orders from airlines.
"I would rather see a healthy Airbus than one that's going through what they're going through," Boeing executive vice president Scott Carson told BusinessWeek magazine in a recent interview.
"I think having healthy competitors is better for all of us," he added in his first extensive interview since being named head of Boeing Commercial Airplanes last month.
The European manufacturer has been rocked by further delays to its flagship A380 superjumbo jet program, which is now two years behind schedule.
Dismay
Australian airline Qantas, Singapore Airlines (SIA), Britain's Virgin Atlantic, Malaysia Airlines and Korean Air have all expressed dismay at the announcement.
Analysts have said that clients are unlikely to cancel orders for the A380, given the advantages of the high-capacity, long-range plane, which can transport 555 to 840 passengers distances of up to 15,000km.
But Airbus will face costly compensation claims and suffer damage to its reputation, which could have knock-on effects in its battle for other airline orders with Boeing.
SIA confirmed it would remain the first to fly the world's biggest commercial airliner, but will not now take delivery until at least next October.
Stephen Forshaw, SIA's vice president of public affairs, said the carrier is already missing out on incremental growth on some routes because of the plane's late arrival.
The Singapore to London route, for example, is served daily by three Boeing 747s that SIA wants to replace with the larger A380s.
Some leases have had to be extended as a result of the A380's late arrival, and some Boeing 747 jumbo jets will remain in service longer than planned, Forshaw said.
SIA meanwhile this month placed an order for 20 Boeing 787 Dreamliners, which the US company says is the fastest-selling plane in history, representing a fuel-efficient competitor to Airbus on medium and long-haul routes.
The Sydney-based independent aviation consultancy firm, the Centre for Asia Pacific Aviation (CAPA), said the delays will be felt most keenly in the Middle East.
Boon for Boeing
CAPA said Emirates' growth trajectory and competitive impact could be slowed, but not stalled by the delays. Last Sunday, the Dubai-based Emirates announced plans to buy 20 747-8 cargo planes from Boeing.
"Every day's delay [at Airbus] gives Boeing a longer walk on the market," said Richard Aboulafia, vice president of the Teal Group, an aerospace consultancy.
This year, the US company is already outstripping its European rival in new aircraft orders by a margin of three to one.
But the US firm has been there before, with unwelcome results. Aboulafia noted that at a time of exploding demand in the late 1990s, Boeing welcomed any and every order placed by an airline.
The outcome was that its factories were overwhelmed by demand, supply chains were interrupted and long-loyal Boeing customers were left seething.
"Historically, the way it works, they would have raised production and gone crazy ... they are more disciplined about that: They are not going after volume or market share, they are going after profit," Aboulafia said.
"There's some evidence that they are raising pricing," Abou-lafia added.
Carson said: "What it taught us is that we needed to regroup a little bit."
And Airbus is by no means down and out, the Boeing executive stressed, highlighting its dominance with the A320 family of narrow-body jets.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from