Boeing orders up 15.5% in 1998

Boeing of the US has said that aircraft orders had risen 15.5 per cent last year, in spite of the Asian financial crisis and loss of important customers such as British Airways.

Boeing said it took firm orders for 656 aircraft, compared with 568 in 1997.

However, the value of 1998 orders fell to $42.1 billion (36.4 billion) from $42.8 billion in 1997 because airlines ordered more narrow-bodied jets, which are cheaper.

After taking cancellations into account, Boeing took orders for 606 aircraft last year, compared with net orders of 502 in 1997.

Boeing said it delivered 563 aircraft in 1998, a 50 per cent increase over 1997.

It had set a goal of delivering 550 aircraft last year but the target appeared in doubt because of production problems.

The difficulties led to Boeing suspending some of its production for a month in 1997 and resulted in the dismissal of the head of its commercial aircraft operation last year. Boeing said it expected to deliver 620 aircraft this year. The expected increase comes in spite of the Asian crisis, which led the company to announce last year that it would cut its workforce by about 20 per cent.

Airbus Industrie, Boeing's European rival, is to announce its 1998 order tally on Monday. The annual announcements are usually accompanied by acrimony, as the two challenge each other's figures.

Airbus has, in the past, alleged that Boeing's figures included orders which had not been finalised.

Boeing said yesterday, however, that its 1998 figures included only orders for which it had received deposits.

The European consortium owned by Aerospatiale of France, DaimlerChrysler Aerospace of Germany, British Aerospace and Casa of Spain won more orders than Boeing in 1994 and had high hopes of taking nearly half the world market this year.

Airbus won orders from traditional Boeing customers, including a consortium of Latin American airlines and British Airways, which ordered up to 188 narrow-bodied aircraft from aircraft from Airbus.