Boeing Vs' Airbus Market Background

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Boeing Vs. Airbus Market Background

• American Enterprise Institute WTO Panel
• July 6, 2006
• Washington, DC
• By Richard Aboulafia
• Vice President, Analysis
• Teal Group Corporation
• raboulafia_at_tealgroup.com

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Since Last Year

• Airbus widebody position has deteriorated.
• Needed entirely new mid-market family, covering
  as broad a range as possible.
• Airbuss ability to fund that new family has
  deteriorated too.
• WTO debate one of many factors in the funding
  equation.

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Teal Jetliner Market Comment

• 2005 orders inflated will fall in 2006/7, but
  deliveries still rising.
• Airbus increased lead in deliveries 5545 (by
  value) in 2005.
• Boeing achieved orders victory in 2005 5842
  (by value).
• 1Q 2006 first Boeing backlog lead since 2001.

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Passengers (3-class)
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Passengers (3-class)
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Major Boeing Issues

• 787 program execution.
• Schedule.
• Production costs.
• Operating economics.

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A370 Funding, Other Airbus Issues

• Technology drivers and propulsion.
• Can A400M help?
• Retaining up-front demand.
• The A380 ulcer.
• Revenue falloff?
• Protecting the narrowbody franchise.
• BAE (upside?).
• Satisfying new investors.
• Complications of state equity.
• Management.
• WTO.
• Dont forget the knock-on effect.

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