Paris Air Show
Aerospace |
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Boeing Defends
Their European Position
Paris (June 15, 1997) -- Boeing played to the European market while levying a strong position against European complaints during a press conference at Paris today.
Woodard went on to describe the impact on France of the relationship with CFMI on the 737. "In the last five years the 737 generated $2.5 billion in sales for Snema through the CFM56 engine. Between this year and 2005 we estimate the 737 will generate almost $7 billion in sales for Snecma.
The Seattle-based aerospace giant pointed to 17 other European suppliers as examples of its international cooperation. Still, Woodard conceded short-term setbacks in the China market. Downplaying its significance, Woodard stated that the market in China is for 1,600 aircraft over the next 20 years, about 1/3 the size of the U.S. market. Over the last 18 months, China bought 50 Airbus aircraft versus 16 for Boeing, according to Woodard, largely as a result of the political situation between the U.S. and China. This situation was exploited by Airbus, stated Woodard. Boeing's strategy will be to "provide a better product, better support, help build the infrastructure, and continue to build on our long-term relationship. Adding emphasis to Boeing's well-publicized position on the U.S. maintaining Most Favored Nation status with China, Woodard said that the U.S. has Most Favored Nation relations with 192 countries. "If Most Favored Nation does not continue with China, it will be a big setback," stated Woodard. And more than that, "I'm concerned about the relations between our two countries - one the most powerful country on earth, the other the most populous." Of course, one of the major contentious points with the EU is exclusivity.
Airbus and the EU's competition commissioner Karel van Miert, contend that
Boeing's exclusive relationships with American, Continental and Delta are
anti-competitive. Woodard states that no other airlines are currently asking
for exclusive agreements. Boeing has consistently claimed that the company
was simply meeting the requests of the three airlines, who had each asked
for exclusive buying relationships. |
Ron
Woodard, president of Boeing Commercial Airplane Group, painted a picture
of multi-national cooperation, describing the company's involvement of an
international airline advisory board, the use of Dassault's CATIA software
for airplane development, and a sole-source, exclusive supplier relationship
with CFMI for the engines on the 737. CFMI is a joint venture between GE
and SNECMA of France. Said Woodward, "With all the talk about Boeing's
recent agreements [with American, Continental and Delta], it's interesting
to note that no one in Europe has ever objected to this exclusive contract."
Looking
to Rolls Royce, the Boeing executive said Boeing aircraft had contributed
$3.8 billion in sales for Rolls, or "72% of their total generated by
airframe manufacturers." Over the next eight years, Boeing estimates
its aircraft will generate $9.2 billion for Rolls, or 63% of their total.