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Technology Stocks : Boeing keeps setting new highs! When will it split? -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (2401)	8/5/1999 3:56:00 PM
From: Wally Mastroly	Read Replies (1) \| Respond to of 3764

ANALYSIS-Boeing's 777 gamble fuels Airbus fury: biz.yahoo.com

To: Wally Mastroly who wrote (2401)	8/6/1999 8:58:00 PM
From: hui zhou	Respond to of 3764

Seattle - A U.S. senator criticized plans by Taiwan's state-owned airline to buy about $1.5 billion worth of Airbus Industrie jets over rival Boeing Co. (Boeing-News) , suggesting politics may have influenced the state-owned carrier's decision, Bloomberg reported. Slade Gorton, who represents Boeing's home state of Washington, will meet Monday with Taiwan's president to discuss plans by China Airlines Ltd. to buy the Airbus planes, according to a spokeswoman for Gorton. The senator sent to a letter to a Taiwanese official in mid-July protesting the plan. Gorton said it was ``particularly disturbing' that China Airlines and Taiwan ``intend to turn their backs on Boeing, the state of Washington and the United States and to order a significant number of aircraft from France, a nation not known for its support of the Republic of China on Taiwan,' according to the letter released today. The timing of the order, however, suggests China Airlines made the decision prior to U.S. criticism of a statement made last month by Taiwan's President Lee Teng-hui who characterized China-Taiwan relations as ``state-to-state.' China rejected the term, and in the escalating political tension between Taiwan and China, the U.S. has pressured Taiwan to downplay the new policy. China Airlines, though, rejected Gorton's argument that the carrier's decision was influenced by politics ``When we choose aircraft, we look at commercial concerns: routes, planning, maintenance, flight crew training, etc.,' said China Airlines spokesman Hamilton Liu. Timing To be sure, China Airlines has not excluded Boeing all together. The carrier has said that its largest-ever aircraft purchase order to be announced next week will include an order to buy 13 Boeing 747-400 cargo jets for as much as US$2 billion for delivery in the next six to seven years. The company will sign contracts with Boeing officials on Wednesday, one day before China Airlines signs for its order with Airbus Industrie officials, said China Airline's chief spokesman Scott Shih. The carrier will sign a contract order with General Electric Co. airplane engine unit the following week, Shih said. Gorton's concern, though, is directed at an additional order for passenger jets for which China Airlines was considering both Airbus A340-300's and Boeing 777-200's. Analysts had expected Boeing to win the order. The news of Airbus' win came out in a July 21-27 issue of aerospace newsweekly ``Flight International.' Asia editor Andrzej Jeziorski said the information was passed to the publication before July 15 by a source familiar with the purchase talks and prior to U.S. criticism of the ``state-to-state' comments made by Lee. The win for Airbus came less than a month after Singapore Airlines Ltd. committed to buy 10 Boeing 777's and to phase out its fleet of Airbus A340-300's. Jeziorski said the French aircraft maker ``was obviously very keen to somehow make up for the rather humiliating loss in Singapore.' Airbus was ``livid' about the loss in Singapore,' he said. ``I imagine they were going out of their way to try and win in Taiwan.' Technical Merit Analysts view the 747 cargo plane order as a victory for Boeing, which has been struggling with waning demand for its most profitable jetliner at a time of economic weakness in most of Asia. The order could help Boeing stave off further cuts in the 747's production rate and offer an unexpected boost to its profits, analysts said yesterday. Boeing's disappointment at losing the passenger plane order was heightened, though, by a 1995 letter in which China Airlines said it would select 777's. Still, in that document, the Taiwan carrier said it was considering offers from other manufacturers. The rival Airbus and Boeing models, which each seat 275 to 400 people, are used on long-distance intercontinental flights. Boeing said it's still hoping to sell 777s to China Airlines. ``We don't consider the campaign over,' said Marta Newhart, a spokeswoman for the Seattle-based company. ``We're continuing to push the merits of the 777 with the airline until they tell us they've made a decision otherwise.' U.S. Trade Representative Charlene Barshefsky became involved in the issue this week, urging Taiwan officials in a letter released by Gorton's office today to make their decision solely on ``technical and commercial merit.'