Airbus expected to beat Boeing on jet orders

TOULOUSE (FRANCE): Airbus Chief Executive Thomas Enders is on Tuesday expected to announce that 2007 was a record year for passenger jet orders and deliveries, allowing the European planemaker to steal the lead back from US rival Boeing Co.

But the healthy order book doesn't make up for another feature of 2007 dogging Airbus and its parent company, European Aeronautic Defence & Space Co NV: the strong euro. The dollar's 11-per cent fall against the euro last year cut into Airbus' revenue.

The European planemaker sells its jets in dollars, though many of its costs remain in euros. It claims to lose more than USD 1.48 billion for every 10 cent rise in the euro.

"Enders will be seeking to strike a balance between being pleased at having the most orders and making it clear that just because Airbus booked a lot of orders, it doesn't mean the company is in perfect shape," said HSBC analyst Edward Stacey.

In today's presentation, Enders may give more details on EADS Chief Executive Louis Gallois' November assertion that the weaker dollar means Airbus needs to find an extra $1.48 billion in cost savings.

That's in addition to a restructuring programme, dubbed Power8, which aims to recoup $2.95 billion in savings by 2010 and cut 10,000 jobs.

EADS blamed the slump in the dollar and delays with the A400M military transport aircraft for a third quarter net loss of USD 1.14 billion, compared with a loss of euro189 million in 2006. It was the fourth time in five quarters the company reported in the red.