Superjumbos

Prashant ChopraJenny GordonTimothy RichterAaron RosenbergKaterina Vrettou

                                                                                                                 

Agenda

Market Overview & Current Strategies

Trade Issues

Current and Future Situation

Conclusions

Q & A

Rationale for Superjumbo

Fewer, larger aircraft will reduce airspace and airport congestion

Airlines will achieve lower operating costs

Boeing Cedes Market to Airbus

Airbus effectively signaled commitment

Companies have different market forecasts

Current Strategies

Airbus A380Delivery scheduled for 2006Validated by Boeing’s retreat

Boeing Sonic CruiserBetting on increased demand for

smaller, faster jets

SpecificationsA380

Sonic Cruiser

Capacity (seats)

555 Up to 300

Range 6200 nm 9000 nm

Speed Mach .85 Mach .95

Price $230 million N/A

Trade Issues

1992 EC –US Bilateral Agreement on Trade in Large Aircraft Direct vs. indirect subsidation

1994 Uruguay Round Agreement

Current status

Current Situation

Order status (A380)Firm orders: 62Options: 60+

Sonic CruiserExists on paper onlyNo orders

Current SituationSome airports being expanded

DubaiSingaporeSchiphol (Amsterdam)Hong Kong

EnginesGP 7000 series (GE / Pratt & Whitney

alliance)Trent 900 series (Rolls Royce)

And Now…

Success factorsA380: acceptability

AirportsAirlinesLoad factor

Sonic CruiserFeasibilityTime factor

Conclusions

Boeing/Airbus pursuing different segmentsThis opens two segments for us as

an engine manufacturerWe’re ready for both

It doesn’t appear that trade issues will affect this situation

Questions