Record jet orders fly to Boeing in 2006

Announcing its 2006 jet-order tally Thursday, Boeing claimed a record year: 1,044 net orders, positioning it to regain the lead from Airbus in the all-important sales category for the first time since 2000.

The list price of those orders is about $114 billion. However, based on estimated actual prices compiled by aircraft valuation firm Avitas, the total value after standard discounts is about $71 billion.

Continuing strong demand for the upcoming 787 Dreamliner and a surge of orders for the aging but renewed 747 jumbo jet helped Boeing surpass 2005's total of 1,002 net orders, when rival Airbus had a late-year surge to top it with 1,055.

In addition, Boeing cornered the air-freighter market.

Against Boeing's new 747-8 and 777 freighters, Airbus offers only the freighter version of its troubled A380 superjumbo, which in 2006 lost orders when FedEx canceled.

While Airbus freighter sales were negative, Boeing sold 81 freighters, including 33 777s and 36 747-8s, accounting for about 18 percent of the total value of its orders.

Airbus has been losing market share and trailed its U.S. rival by a wide margin in mid-December.

Barring an unlikely flood of last-minute orders, it will drop to second place in orders when it announces 2006 figures Jan. 17.

Boeing's 2006 gross orders — which do not take account of cancellations and conversions — came to 1,050.

Among the notable orders for the year were Lufthansa buying the passenger version of the 747, FedEx replacing its canceled A380 freighters with 777s, Air Berlin ordering 75 737s, and Delta buying its first airplanes since 2000 — 10 Boeing 737s.

Airbus, however, will retain its lead for a fourth straight year in aircraft deliveries, the category that determines the world's No. 1 plane maker.

Boeing said it delivered 398 commercial planes in 2006, while Airbus is on pace to deliver a record 425.

Boeing recorded 157 orders for the 787 last year, with customers eager to take advantage of its lower fuel consumption and more passenger-friendly design.

The plane is due to enter service in mid-2008 after test flights beginning this year.

Still, it was the 737 that provided the bulk of orders again in 2006, with customers seeking a record 729 of the popular single-aisle aircraft.

Boeing had 76 orders for 777s, 10 for 767s and 72 for 747s, which it said was the highest total for the 747 program since 1990.

Scott Carson, chief executive of the Seattle-based commercial jet-building division, said Boeing has built a well-balanced backlog of orders over the last two years, after having struggled previously.

"The strong orders for the past two years are a validation of our strategy of focusing on our customers, simplifying our product and services offerings and transforming our production system," Carson said.

Carson, who took over the job after Alan Mulally left to become CEO at Ford Motor, was credited with reinvigorating the sales force as its Boeing commercial-airplane sales chief from December 2004 until last September.

Separately, Boeing reported reducing its work force by 2,356 jobs to 154,031 in 2006, with the majority of the cuts in California.

But it has added jobs for 31 consecutive months in Washington state, where it had 68,170 employees as of Dec. 31, reflecting the need to keep up with strong demand for commercial airplanes.

Boeing shares, which rose 26 percent last year, closed slightly up Thursday at $89.53.

Seattle Times aerospace reporter Dominic Gates contributed to this story.