Military

Boeing, Airbus Maintain Order Silence at Zhuhai; Airbus Reports Results

Airbus A320neo
Airbus Group NV
If we hadn’t known beforehand that China’s largest aerospace event — the Zhuhai Air Show — was in progress this week, we’d probably have slept through it. Neither Boeing Co. (NYSE: BA) nor Airbus has announced a single order at the show so far. China’s new aircraft maker, Comac, has written the single notable commercial order of the show so far.

Boeing did announce an order for 80 of its 737 MAX 8 aircraft from Japanese leasing company SMBC Aviation Capital on Sunday, before the show opened. The order was valued at $8.5 billion at list prices.

A report in Aviation Week claims that Airbus and China Aircraft Leasing have signed a memorandum of understanding for 100 A320 family jets. The order includes 74 of the company’s new A320neo aircraft, 16 A320s and 10 A321s. The company has not announced this order yet.

To take some of the sting out of the lack of news from Zhuhai, Airbus reported its nine-month results Friday morning. The commercial aircraft division posted revenues of €40.5 billion (about $50.4 billion), up 4% from €38.9 billion in the same period a year ago. Earnings before interest and taxes (EBIT) and before one-time adjustments totaled €1.78 billion, compared with €1.71 billion in the first nine months of 2013.

Airbus expects deliveries to be flat with 2013 at around 626. Boeing has forecast deliveries for 2014 at 715 to 725. Airbus expects to deliver its first A350 by the end of the year and also expects to take more orders for commercial planes than it delivers and projects revenues to be flat with its 2013 total.

The company’s A350 has followed the same path to its entry into service as Boeing’s 787 — years late and billions over budget. From Friday’s press release:

Going forward, from today’s point of view, the one-offs should be limited to potential charges on the A350 XWB programme and foreign exchange effects linked to the pre-delivery payment mismatch and balance sheet revaluation. The A350 XWB programme remains challenging. Any change to the schedule and cost assumptions could lead to an increasingly higher impact on provisions.

An earlier report on the Zhuhai Air Show indicated that Boeing might delay any new order announcement until President Obama made an appearance at the show. But the president is in Burma today and is scheduled to fly to Australia for a G-20 meeting on Saturday. Whether that means he was never going to stop at the show or that Boeing doesn’t have anything to announce is anybody’s guess.

ALSO READ: Boeing Gives Away a 787

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