Planemakers end year with a flourish

Fierce rivals Airbus and Boeing are poised to close the year with record strength, lifted by a pickup in air traffic and the solid financial health enjoyed by airlines in Asia and the Middle East.

The manufacturers are expected to receive 1622 firm orders for civilian aircraft in 2005, beating the record of 1600 in 1989.

US-based Boeing staged a spectacular comeback this year and is expected to receive a total of 870 firm orders after a mere 272 in 2004.

By the end of November, Airbus, the France-based European consortium, had received 687 orders but was looking to hit 752 for the full 12 months, up from 366 in 2004.

Airbus is banking on 370 aircraft deliveries in 2005 after 320 in 2004. In the first 11 months of the year, Airbus had delivered 337 planes to Boeing's 268.

Both groups are taking advantage of a rebound in global air traffic detected in 2004 after three dismal years following the 9/11 attacks in the United States.

The International Air Transport Association said traffic rose 7.9 per cent in the first 10 months of 2005 compared with the same period last year.

In addition, this year's surge in oil prices has been a boon to aircraft manufacturers, prompting commercial carriers to invest in more modern, energy-saving planes.

Airbus and Boeing in the waning weeks of 2005 have won major orders that should boost their financial performance over the coming 12 months.

Qantas recently announced an order for 115 of Boeing's future long-haul 787, dubbed the Dreamliner. Sixty-five of the orders were described as firm.

CR Airways, Hong Kong's third- largest carrier, opted for 30 of Boeing's B737-800 models with 10 787s.

On December 8, Airbus announced an order from China for 150 aircraft in its A320 range.

While India and China accounted for many of the big deals this year, a healthy number of orders came from the Middle East, where carriers have managed to attract international traffic to regional hubs such as Dubai.

- REUTERS