Airbus boosts production as Boeing cuts Douglas line

Airbus Industrie is to raise aircraft production by 25 per cent next year following confirmation of a $6bn (pounds 3.6bn) order from USAirways while Boeing is set to write-off a further $1bn by closing down McDonnell Douglas production lines.

Michael Harrison examines the prospects for the world's two leading manufacturers of commercial airliners.

The Toulouse-based Airbus consortium plans to increase production from 185 planes this year to 234 next year to cope with an orders backlog that now stands at more than 1,000 aircraft worth $70bn.

The decision was taken after USAirways confirmed an order for 124 jets from the A320 range worth between $4.3bn and $6bn.

Together with further options and orders to be confirmed, the deal with USAirways could involve as many as 400 aircraft worth $17bn, making it one of the biggest commercial jet contracts ever.

Shares in British Aerospace, which has a 20 per cent stake in the four- nation consortium, closed 35p higher at pounds 16.17 on confirmation of the giant order. BAe makes wings for the Airbus range at its Chester plant in the North-west.

Meanwhile, Boeing announced in Seattle last night that it was to scrap production of the McDonnell Douglas MD-80 and MD-90 by mid-1999 once existing orders have been completed.

The wide-bodied MD-11 will continue in production but mainly as a freighter aircraft, not a passenger jet.

Boeing, which took over McDonnell Douglas for $13bn earlier this year, has also put the future of its most recent jet, the 100-seat MD-95, under review.

Boeing has agreed to honour a launch order for 50 of the aircraft from Air Tran but said it would need to assess the market to decide whether it can keep the jet in production.

Analysts believe that the closure costs involved in running down the McDonnell Douglas production lines in Longbeach, California, could force it to write-off a further $500m-$1bn.

This is on top of the $2.6bn charge Boeing is incurring to cover the costs of production difficulties at its Seattle plants caused by the unprecedented increase in manufacturing rates.

Boeing wrote off $1.6bn in the third quarter and expects to take a further $1bn charge next year to cover the costs of penalty payments for late deliveries and production bottlenecks.

Ron Woodard, president of Boeing Commercial Airplane Group, refused to be drawn on the scale of the write-offs at McDonnell Douglas, saying they would be released with the group's fourth-quarter results.

News
peopleHowards' Way actress, and former mistress of Jeffrey Archer, was 60
Sport
Romelu Lukaku puts pen to paper
sport
News
Robyn Lawley
people
Arts and Entertainment
Unhappy days: Resistance spy turned Nobel prize winner Samuel Beckett
books
PROMOTED VIDEO
News
people
Life and Style
Troy Baker and Ashley Johnson voice the show’s heroes
gamingOnce stilted and melodramatic, Hollywood is giving acting in video games a makeover
News
A speech made by the Turkish Deputy Prime Minister urging women not to laugh in public in order to preserve morality has sparked a backlash on social media from women posting defiant selfies of themselves laughing at his remarks.
GALLERYWhy are Turkish women having a chuckle at the government's expense?
News
i100
Life and Style
Phones will be able to monitor your health, from blood pressure to heart rate, and even book a doctor’s appointment for you
techCould our smartphones soon be diagnosing diseases via Health Kit and Google Fit?
News
people
Extras
indybest
Travel
Ryan taming: the Celtic Tiger carrier has been trying to improve its image
travelRyanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Sport
Usain Bolt confirms he will run in both the heats and the finals of the men's relay at the Commonwealth Games
commonwealth games
Life and Style
Slim pickings: Spanx premium denim collection
fashionBillionaire founder of Spanx launches range of jeans that offers 'thigh-trimming construction'
News
Sabina Altynbekova has said she wants to be famous for playing volleyball, not her looks
people
News
i100
Life and Style
tech'World's first man-made leaves' could use photosynthesis to help astronauts breathe
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

BA/PM,EMIR/Dodd-Frank,London,£450-650P/D

£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...

Senior Analyst - ALM Data - Banking - Halifax

£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...

Java developer - Banking - London - Up to £600/day

£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...

Day In a Page

Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices
Could our smartphones soon be diagnosing diseases via Health Kit and Google Fit?

Could smartphones soon be diagnosing diseases?

Health Kit and Google Fit have been described as "the beginning of a health revolution"
Ryanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?

Can we learn to love Ryanair again?

Four recent travellers give their verdicts on the carrier's improved customer service
Billionaire founder of Spanx launches range of jeans that offers

Spanx launches range of jeans

The jeans come in two styles, multiple cuts and three washes and will go on sale in the UK in October
10 best over-ear headphones

Aural pleasure: 10 best over-ear headphones

Listen to your favourite tracks with this selection, offering everything from lambskin earmuffs to stainless steel
Commonwealth Games 2014: David Millar ready to serve up gold for his beloved Scotland in the end

Commonwealth Games

David Millar ready to serve up gold for his beloved Scotland in the end
UCI Mountain Bike World Cup 2014: Downhill all the way to the top for the Atherton siblings

UCI Mountain Bike World Cup

Downhill all the way to the top for the Atherton siblings
Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star