After five years of finishing second in airplane sales, Boeing finally turned the tables on rival Airbus.
Boeing tallied 1,050 orders last year, 226 more than the European aircraft maker, according to figures released yesterday by Airbus executives. Boeing also took in far more orders for the most lucrative types of jets, wide-body aircraft, and closed its backlog gap with Airbus.
The sales figures provide fresh evidence that Boeing is emerging from a period of corporate scandal, sluggish sales and business miscues.
"They have gone from uncertain future and second place to unquestioned dominance," said Richard Aboulafia, an analyst with Teal Group.
In dollar terms, Boeing's orders topped Airbus's sales by $32 billion, according to an analysis by Aboulafia.
But the year was not all gloomy for Airbus. Despite a series of setbacks, the company still managed to have its second-best year in jet sales since it was founded in 1970. Its best year came in 2005, after it took orders for 1,111 planes. Airbus also delivered more aircraft than Boeing last year. Some analysts said that Airbus did a solid job of selling airplanes even as it battled its highly publicized problems.
"You can't lose sight of that," said Scott Hamilton, managing director of Leeham Co., an Issaquah, Wash., firm that tracks the aerospace industry.
Boeing and Airbus have sold more commercial jets in the past two years than at any time in aviation history. Analysts and executives said the trend is being fueled by airlines that put off purchases after the Sept. 11, 2001, terror attacks and strong growth in air travel in Asia and the Middle East. That growth is expected to continue. Boeing predicts that airlines will need to buy 27,210 new jets in the next 20 years.
"The industry is doing well," said Randolph S. Baseler, vice president of marketing for Boeing. "What we see here is that the airlines are endorsing both of our products."
Still, Boeing executives said they do not expect to match recent annual sales numbers this year. "To have three years in a row like that would be unprecedented," Baseler said.
The sales performance at Airbus reflects the aircraft maker's high-profile problems last year. Wiring issues plagued production of its much-promoted A380 super-jumbo jet, delaying its delivery to customers by two years and costing the company at least $3.6 billion.
FedEx then dropped orders for 10 freighter versions of the plane, worth $3 billion at list price, and put in orders for 15 Boeing jets instead.
Airbus was also forced to redesign a new wide-body jet, now named the A350xwb, because airlines and leasing companies thought it did not measure up to Boeing's fast-selling 787 Dreamliner. Boeing has taken 448 orders for the 787, which is still in development.
The European manufacturer has also endured management turmoil, with several executives either being fired or forced out in the wake of the production and design missteps.
Airbus executives said they were continuing to work out the A380's problems and lining up contractors to help build the A350xwb. They plan to use a production system for the A350xwb that is similar to the one Boeing developed for the 787 Dreamliner. Boeing enlisted contractors to build crucial parts of the plane in a profit-sharing system that spreads out costs and risks. Developing a new jet costs billions of dollars.
Airbus executives said they also want to find ways to cut costs and improve efficiency this year. They would like to increase the business they do in dollars because the exchange rate with Europe has become so lopsided, they said.
"We have a lot of good news and some challenges," Barry Eccleston, chief executive of Airbus North America, said in an interview. "This year we are going to face up to those challenges."
While many analysts have been focused on how Airbus has slipped behind Boeing in the wide-body race, both companies are working hard to develop the next generation of single-aisle jets, which accounted for about 75 percent of orders and half of total sales value.
The new, bigger wide-body jets, which have two aisles, take advantage of lighter composite materials and new engines to reduce fuel costs by as much as 20 percent. But that technology does not translate as easily to jets that haul passengers over shorter distances. Yet the companies are hesitant to turn their backs too quickly on single-aisle offerings that continue to sell well.
Last year, Boeing sold 733 of the single-aisle planes while Airbus sold 673.
"We are spending money on research and technology and will probably increase the amount next year" on single-aisle planes, said Eccleston, the Airbus executive. "But neither Boeing or Airbus are rushing to replace ourselves. None of us are going to kill the geese that lay the golden eggs."