Boeing seeks to shift focus to long-term, says industry prospects remain robust

Boeing strikes positive tone amid Air Show gloom

LE BOURGET, France — Boeing Co. sought Monday to strike a positive tone in face of the ambient gloom surrounding the Paris Air Show, saying key programs such as its 787 commercial airliner remain on track and that the industry may grow again next year.

“Are we down in the dumps about the status of this industry? Have we allowed the current economic situation to overwhelm us and discourage us from the path ahead? The answer is absolutely no,” said Scott Carson, president and chief executive of Boeing’s commercial aircraft division.

“At this point it appears to us that the economic conditions have bottomed,” Carson said. “If they have bottomed and a recovery comes next year, I think we have a shot at getting through.”

Boeing recently cut its outlook for the commercial aircraft market for the first time in at least a decade, which Carson said was mainly driven by the drop in freight traffic due to the global recession.

“On the passenger side, if we have hit the bottom and it feels like we could be bouncing on the bottom and if capital remains available as we move into next year I think we have an opportunity to hold our production rates where they are,” Carson said.

While many aviation industry watchers are focused on gloomy forecasts, expecting the airline industry to collectively lose $9 billion this year due to a plunge in revenue, Carson sought to focus on the industry’s longer range possibilities.

“The long-term prospects for the industry are as robust as they have ever been,” Carson said.

Boeing’s 787, a long-delayed but highly popular new aircraft built for fuel-efficiency with lightweight carbon composite parts, is still expected to make its first flight by the end of this month, Carson said. However, in answer to some hopeful Air Show attendees who thought Boeing might attempt to make a splash with a surprise first flight during the show, Carson had disappointing news.

“If you were expecting the 787 to fly during the air show you will be disappointed,” said Carson. “If it had happened during the air show it would have been great, but it was never our intention to target it at the air show. The airplane will fly when it is completely ready.”

Boeing expects to deliver the first 787 during the first quarter of next year, Carson added.

Boeing’s new 747-8 freighter is now in final assembly in Seattle, and will achieve power on later this summer, Carson said. It is scheduled to make its first flight before the end of the year, he said. “We anticipate delivery to first customers in the third quarter of 2010 and the passenger version will enter service in the fouth quarter of 2011.”