Boeing snags new B777 order, confident in outlook – Suppliers Share Wrap

An unidentified Boeing customer has ordered 12 B777s this week, a little more than a month after Boeing forecast that it would receive more orders for its popular long-range widebody. The latest order puts Boeing up to 112 gross orders for 2010, well ahead of Airbus, which is lagging at 60 orders for the year to the end of Mar-2010.

Boeing’s cancellation woes have not vanished altogether though, with the manufacturer striking another B737 off its order book. This takes total order cancellations for the year to date to 18 (five B737s, three B777s and ten 787s) and drags Boeing’s net orders down to 94.

Boeing is showing renewed confidence in the strength of the air travel recovery, although the situation in Europe will undoubtedly produce some shock-waves. Speaking to Bloomberg, Boeing’s VP Marketing, forecast that global passenger traffic would grow between 3% and 5% this year. He also expects Boeing’s net orders this year would match the 142 the manufacturer received last year.

Despite the cancellations this year, Boeing is witnessing fewer order deferrals and cancellations, and is entering talks with more airlines, according to Mr Tinseth.

On the other side of the Atlantic, Airbus has not been as buoyant in its forecasts, and expects deliveries will significantly outweigh orders again this year. The manufacturer this week admitted that it will be a tight challenge to get its A350XWB out on schedule, with testing to commence from 2012. The A380 programme is still encountering challenges as well. This month, Korean Air deferred its first A380 delivery from 4Q2010 to 2Q2011.

Selected Aviation suppliers’ daily share price movements (% change): 19-Apr-2010