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Released April 04, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--While The Boeing Company (NYSE:BA) (Chicago, Illinois) has its share of issues, aircraft manufacturer Airbus (Toulouse, France) continues to capitalize on its top rival's problems to increase sales, and meet and exceed projected sales. Airbus recently hit record delivery numbers with a record number of clients throughout the Asia-Pacific region, while maintaining its goals on infiltrating Boeing's stronghold in the U.S.
According to the latest market forecast by Airbus, Asia-Pacific carriers will take the global lead in demand for larger and more eco-efficient aircraft types over the next 20 years. Altogether, airlines from the region are estimated to receive deliveries of about 9,800 new passenger and cargo aircraft during the projected period, valued at $1.6 trillion. The delivery of these aircrafts represents 35% of all new aircraft deliveries worldwide over the next 20 years--which, according to Airbus, is ahead of both Europe and North America.
Airbus also mentioned that the Asia-Pacific region and its deliveries will account for 40% of the global market for new airliners, reflecting the higher proportion of wide-body aircraft. This is a great attribute to Airbus' success, as the Asia-Pacific region was once dominated by Boeing.
Part of the success that Airbus has seen and will see in the future is due to a record $24 billion order for new single-aisle jets from the low-cost Indonesian airline Lion Air. The company ordered 234 of Airbus' popular A320 and the A321 series jets, which represent the largest single order of Airbus jets ever, both by value and number of planes. These new planes are scheduled to be delivered beginning in 2014.
The U.S. remains the biggest market for single-aisle planes. Airbus plans to open a $600 million commercial jet assembly plant in Alabama, which will be its first in the U.S., to meet demand as North American airlines renew their fleets. Airbus will use the site to assemble single-aisle A320 aircraft that compete with Boeing's 737. Globally, Airbus and Boeing split the market for single-aisle planes fairly evenly, but in the U.S., Airbus holds only a 20% share of the market.
Airbus has forecast that nearly 70% of new jet sales worldwide over the next 20 years, or 19,200 aircraft worth $1.4 trillion by 2030, will be of this type. About 40% of those planes are expected to replace aging, less fuel-efficient aircraft. While Airbus has publicly stated that the Alabama plant will build Airbus's new A320, is also has said that the potential for Airbus to pursue military contracts is not far in the future. Using the Alabama plant to manufacture military equipment could improve Airbus' track record in the U.S. and increase its presence in its growing defense business, such as for its popular Eurocopter attack helicopter or its cutting-edge jet fighter and support aircraft.
Airbus outperformed its business targets in 2012, delivering a company record of 588 jetliners to 89 customers, and exceeding the year's 650 booking goal by winning 914 gross orders (833 net). As of December 2012, the Airbus backlog stood at 4,682 aircraft (valued at more than $638 billion, based on list prices), setting a new industry-wide record and providing more than seven years of production.
As the battle for supremacy of the skies continues, both Airbus and Boeing are keeping their expectations and forecasts high. As Airbus has taken steps to overthrow Boeing on its own turf, Boeing still holds the slight upper hand when it comes to pure sales.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
According to the latest market forecast by Airbus, Asia-Pacific carriers will take the global lead in demand for larger and more eco-efficient aircraft types over the next 20 years. Altogether, airlines from the region are estimated to receive deliveries of about 9,800 new passenger and cargo aircraft during the projected period, valued at $1.6 trillion. The delivery of these aircrafts represents 35% of all new aircraft deliveries worldwide over the next 20 years--which, according to Airbus, is ahead of both Europe and North America.
Airbus also mentioned that the Asia-Pacific region and its deliveries will account for 40% of the global market for new airliners, reflecting the higher proportion of wide-body aircraft. This is a great attribute to Airbus' success, as the Asia-Pacific region was once dominated by Boeing.
Part of the success that Airbus has seen and will see in the future is due to a record $24 billion order for new single-aisle jets from the low-cost Indonesian airline Lion Air. The company ordered 234 of Airbus' popular A320 and the A321 series jets, which represent the largest single order of Airbus jets ever, both by value and number of planes. These new planes are scheduled to be delivered beginning in 2014.
The U.S. remains the biggest market for single-aisle planes. Airbus plans to open a $600 million commercial jet assembly plant in Alabama, which will be its first in the U.S., to meet demand as North American airlines renew their fleets. Airbus will use the site to assemble single-aisle A320 aircraft that compete with Boeing's 737. Globally, Airbus and Boeing split the market for single-aisle planes fairly evenly, but in the U.S., Airbus holds only a 20% share of the market.
Airbus has forecast that nearly 70% of new jet sales worldwide over the next 20 years, or 19,200 aircraft worth $1.4 trillion by 2030, will be of this type. About 40% of those planes are expected to replace aging, less fuel-efficient aircraft. While Airbus has publicly stated that the Alabama plant will build Airbus's new A320, is also has said that the potential for Airbus to pursue military contracts is not far in the future. Using the Alabama plant to manufacture military equipment could improve Airbus' track record in the U.S. and increase its presence in its growing defense business, such as for its popular Eurocopter attack helicopter or its cutting-edge jet fighter and support aircraft.
Airbus outperformed its business targets in 2012, delivering a company record of 588 jetliners to 89 customers, and exceeding the year's 650 booking goal by winning 914 gross orders (833 net). As of December 2012, the Airbus backlog stood at 4,682 aircraft (valued at more than $638 billion, based on list prices), setting a new industry-wide record and providing more than seven years of production.
As the battle for supremacy of the skies continues, both Airbus and Boeing are keeping their expectations and forecasts high. As Airbus has taken steps to overthrow Boeing on its own turf, Boeing still holds the slight upper hand when it comes to pure sales.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
