Boeing Loads Up On Orders At The Paris Air Show

Boeing Co. officials came home from the Paris Air Show reassured that their flashy new 777 is a hit and with some evidence the airline industry finally is regaining its health.

Boeing signed contracts and commitments at the world’s largest aerospace trade show to build more than $5 billion worth of airplanes, although many of the orders had been rumored months in advance.

The aerospace company also finalized a $5.2 billion order from Saudi Arabia Airlines on Sunday. The Saudis have ordered 23 of the 777 twinjets - one more than expected - and five 747 jumbo jets. Deliveries are to begin in 1997.

Airbus Industrie, Boeing’s chief competitor, had about $1.5 billion in orders and McDonnell Douglas landed orders worth about $180 million at the week-long show.

In addition, McDonnell Douglas’ share of the huge Saudi order is estimated at $2 billion or more. The Saudis want 29 of the company’s 150-passenger MD-90 airliners and four freighter versions of the three-engine MD-11.

“The airline industry is recovering - they’re confident enough to start ordering airplanes again,” said Boeing analyst Bill Whitlow of Pacific Crest Securities.

“The show was certainly an endorsement of the 777,” he said. “Its order backlog is in very good shape, despite the fact it was launched at the beginning of the worst period for the airline industry.”

The 777, the world’s largest twin-engine jetliner, entered commercial service earlier this month. Boeing now has had orders for 167 of the planes.

Boeing was optimistic about the show’s returns.

“We’re seeing signs of a return to health of the world’s airlines,” said company spokesman Russ Young.

“Boeing provides more value than our competitors do, and over that one-week period there were good signs that our customers agree and are willing to make agreements with us about their future,” Young said.

Airlines world wide suffered huge losses in the early 1990s because of global recession, the Gulf War and cutthroat air fare competition. Those losses were reflected in cancelled or delayed orders.

Four airlines ordered 31 777-300X, the stretch version of the new 777, pending approval by the Boeing board of directors to begin making the airplane.

The orders were placed by All Nippon Airways of Tokyo, Cathay Pacific Airways of Hong Kong, Korean Air Lines of Seoul and Thai Airways of Bangkok, and are valued at $3.1 billion.

Of those orders, 11 were conversions of existing 777 orders.

“We’re predicting growth in the Asian market to be a significant part of overall market growth over the next 20 years,” Young said.

In addition:

Eurobelgian Airlines of Brussels ordered two 737-800s, valued at $94 million.

Lauda Air of Vienna ordered two 737-800s, valued at $94 million.

China Airlines of Taiwan signed letters of intent on four 777-200s, valued at $560 million.

EVA Airways of Taiwan signed letters of intent on four 777-200s, valued at $560 million, and reserved options on four more.

United Parcel Service exercised options on five 757 freighters, valued at $300 million. UPS already has 18 freighters on order, and still has options on 36 planes.

Cargolux International Airlines of Luxembourg ordered a 747-400 freighter valued at $150 million.

Air Europa of Palma de Mallorca signed a memo of understanding on eight 737-800s, valued at $376 million.