New Boeing Chief Vows Not to Lose Money

April 5, 2005
Boeing Co. doesn't need money-losing airplane orders to compete with rival Airbus SAS, the company's new top commercial-jet salesman said Monday.

BELLEVUE, Wash. (AP) -- Boeing Co. doesn't need money-losing airplane orders to compete with rival Airbus SAS, the company's new top commercial-jet salesman said Monday.

''Our intention is not to do silly business,'' Scott Carson told reporters at an evening briefing in this Seattle suburb.

Analysts speculate that Boeing may be unable to compete with Airbus on price because the French-based consortium is willing to take a loss to build market share. The European Aeronautic Defense and Space Co. holds a majority stake in Airbus.

Carson, a longtime Boeing executive, was appointed to head commercial airplanes sales in December, as the company saw Airbus increasing its dominance in delivering airplanes. He replaced Toby Bright, who is ''accepting new responsibilities,'' Boeing said.

Carson has the tough job of selling the aerospace giant's new 787 while competing with Airbus on existing models.

The stakes are high. The Chicago-based aerospace company, which has most of its commercial airplane operations around Seattle, was beaten by Airbus in airplane deliveries in both 2003 and 2004.

Carson vowed Monday to win more orders for Boeing this year, but the company would not provide any updated projections on deliveries at the briefing.

Airbus recently said it would begin taking orders for a brand-new A350, which would compete directly with Boeing's 787.

Spanish airline Air Europa has made a tentative commitment for 10 A350s, but the European plane-maker has yet to garner enough interest to officially begin production of the new plane. Still, some analysts say the A350 is already proving a distraction in Boeing's efforts to win 787 orders.

Boeing had set a goal of 200 787 orders by the end of 2004. So far, it has just 64 firm orders, plus an additional 129 tentative commitments.

Carson said he thought making the 200-order goal public made it harder, creating pressure that some airlines may have believed gave them an advantage in negotiations.

The fuel-efficient 787 is scheduled to enter service in 2008.

Competition from the A350 ''is a non-factor,'' he said.

Carson was previously head of Boeing's in-flight Internet venture, Connexion by Boeing, and held various positions in the company's space, defense and commercial operations.