European planemaker Airbus celebrated a surprise win in the annual orders race against Boeing with the 10,000th plane sale in its 40-year history, part of a $5 billion order from Virgin America. A last-minute surge pushed Airbus past its US rival for a third year as it held onto a 2010 net order market share of 52 percent in the face of a resurgent Boeing, which was hit by cancellations in 2009 due to delays to its 787 Dreamliner.
EADS subsidiary Airbus said on Monday it had sold 644 planes worth over $84 billion at list prices in 2010 after a surge of 200 orders in December, beating Boeing's total of 625. For the eighth year running, Airbus delivered more planes than its US rival, topping the 500 mark for the first time while Boeing deliveries fell 4 percent to 462. Planemakers only get paid on delivery, usually at least 18 months after purchase.
Airbus and Boeing are recovering from an industry recession which saw combined demand for their planes fall by more than two-thirds in 2009 as passenger and cargo air traffic plummeted. "These figures show the economy is improving. We have dodged the bullet on a double-dip recession. Aviation is growing again because of Asia, low-cost carriers and emerging markets," Airbus sales chief John Leahy told reporters.
"The only negative on the horizon is the fuel price." Airbus's late spree included the first firm purchase of a revamped A320 passenger jet, the A320neo, by Richard Branson's California-based low-cost airline Virgin America. The British entrepreneur, on crutches after a skiing injury, staged a signing ceremony with Airbus executives, although the actual deal was concluded in secrecy at the end of December.
Last week Airbus announced the world's largest plane order by volume from India's IndiGo, including 150 new model A320 jets, but the contract will probably be finalised in 2011. Virgin America's order is for 60 Airbus A320 jets including 30 A320neo aircraft with newer engines. The upgrade aims to prolong the life of Airbus's best-seller by offering 15 percent fuel savings on the 150-seat, mid-distance plane.
The deal expands a provisional order announced last July for 40 A320 single-aisle passenger planes, plus options for 20 more. Airbus has since begun offering A320neos at a higher price. Air India said on Monday it would lease 40 new planes from Canada's Bombardier and Airbus. Adjusting for cancellations, Airbus sold a net total of 574 planes worth $74 billion in 2010 compared with Boeing's 530, giving the European firm a market share of 52 percent. This was stronger than many analysts had predicted.
Both firms more than doubled their order intake in 2010 as airlines staged a stronger-than-expected recovery. They share the commercial market for large airplanes with at least 100 seats but face challenges from Canada, China, Russia and Brazil. Chief Executive Tom Enders said Airbus would increase commercial deliveries to 520-530 planes in 2011 and would sell more than it delivered, without giving a more precise goal. Airbus had total revenue of "around 30 billion euros" ($39.9 billion) in 2010, Enders said, up from 28,067 billion in 2009.