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

To: steve dietrich who wrote (2104)	2/8/1999 9:45:00 PM
From: porcupine --''''>	Read Replies (1) \| Respond to of 3763

China asks plane makers to stall deliveries-paper BEIJING, Feb 8 (Reuters) - Chinese civil aviation authorities, faced with aircraft overcapacity amid an industry slump, have asked plane suppliers to postpone deliveries, the China Daily said on Monday. Forty three deliveries would go ahead this year as scheduled, the paper quoted an official with the Civil Aviation Administration of China as saying. But suppliers have been asked to delay deliveries for the next two years, Wang Zhi was quoted as saying. The decision would be a blow to Boeing and Airbus Industrie [ARBU.CN], who are battling for dominance in the world's fastest-growing aviation market and have dozens of aircraft on order for China. Ray Bracy, President of Boeing China, cast doubt on the report. "It is likely they won't order new planes but we do not expect they will postpone aircraft already ordered," he said in an interview. The China Daily said the 43 aircraft to be delivered included one Boeing 747, two Boeing 777s, 15 Boeing 737s, three Boeing 757s and 19 Airbus 320s. Wang said China would freeze the size of its commercial airline fleet this year, offsetting the arrival of the 43 planes by taking out of service an equivalent number. Airlines would try to sell or lease their aircraft, not renew existing lease agreements and not service aircraft that have reached retirement age, said Wang, the Director of the CAAC's Department of Planning, Science, Technology and Restructuring. Some old passenger aircraft would be converted into freighters, he said. Dong Yuguo, a spokesman for Airbus China, said: "It doesn't look like there's a threat to the 19 Airbus to be delivered this year." "You could say we're very curious," he said, referring to the China Daily report. He said roughly 10 Airbus were planned for delivery next year. CAAC officials were not immediately available for comment. After successive years of 30 percent growth, China's aviation industry began to stall in 1996, the China Daily quoted Wang as saying. Growth in 1996 was 12 percent, slowing to 7.5 percent in 1997 and 6.3 percent last year. "Setbacks last year taught Chinese aviation a lesson," Wang said. "In a sense it is a good thing." Domestic airlines have been slashing fares on domestic routes to attract customers as a slowing economy and the effects of the Asian financial crisis begin to bite. International carriers such as Air China are having trouble competing against U.S. and European rivals. The government plans a shakeout of the industry that will create several large airline groups through mergers and acquisitions. Reynolds Russell web.idirect.com "There are no sure and easy paths to riches in Wall Street or anywhere else." (Benjamin Graham)