Aircraft orders to remain buoyant in 07: CAPA

Sydney, Feb 23 (UNI) Global aircraft orders will remain fairly buoyant this year led by North American and European major carrier re-fleeting decisions, according to the Centre for Asia Pacific Aviation (CAPA).

But the overall order levels may not reach the 2005/06 peak, said the leading consultancy firm.

Asia Pacific carriers as a group are unlikely to be major buyers of new aircraft in 2007, although the Chinese government and major carriers in the Gulf region including Emirates and Qatar Airways are expected to add to their orders.

AirAsia is likely to increase its A320 order and decide on its long-haul equipment while Virgin Blue is close to finalising an order for its initial long-haul fleet.

''Even if we experience an elongated orders cycle as appears likely, the real question marks hang over aircraft deliveries,'' said CAPA's executive chairman Peter Harbison.

''Meanwhile, airlines must prepare contingency plans in case the cycle does quickly turn. History has a habit of repeating itself.'' Aircraft manufacturers and lessors are experiencing unprecedented boom times. Boeing won the orders race in 2006 with a record 1,044 net orders (eclipsing 1,002 logged in 2005), against Airbus' second best-ever annual tally of 790.

Thanks to the past two years, both manufacturers are sitting on enormous production backlogs. Airbus has 2,533 outstanding orders and Boeing around 2,434. Production lines for many models are essentially sold out for the next two to three years.

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