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The article reports that the production plans for aircraft makers Airbus and Boeing, are largely affected by a steep drop in demand and associated airline cutbacks. Airbus has already adjusted narrow-body output-cutting production to 34 aircraft per month beginning in October 2008, but merely flattened build rates on widebodies. Boeing has already announced job cuts and is expected to increase these as production is reduced.

The article informs that with a 45-aircraft order from Qantas Airways Ltd. for 787s worth a theoretical $7.6 billion, Boeing Co. has added to an already enviable lead in this year's wide-body sales, sweeping past rival Airbus Industrie SA in every product category. Qantas has been facing a good-news, bad-news situation. Jetstar International is to have an initial route structure requiring 10 aircraft for point-to-point services from Australia into Asian and Pacific markets that are unprofitable for the higher-cost network that Qantas runs.

Airbus Co. controls more than 50 percent of the market and the Boeing Co. says it's time to clear the air with a new, enforceable agreement. And at the Farnborough air show last week, Boeing Commercial Airplanes president Alan Mulally stepped up the tempo. Airbus continue to subsidize and provide launch aid for each of their programs. What Boeing objects to is the usual practices of European governments in providing financial aid. Airbus points to a $3.2-billion incentive package that the state of Washington approved to assure 7E7 assembly in Everett.

Reports that orders across their product ranges flowed in for Airbus and Boeing at the Farnborough air show in 1998. Whether major airlines will ever pay book value for new aircraft; Boeing's price increase following a year of record revenues and record losses; A listing of orders that were placed with various companies.

The author reflects on the need for original equipment manufacturers to closely monitor supply chains. He talks about how aerospace companies Boeing and Airbus both have a significant backlog of orders and mentions that airlines have increased demand for new fuel-efficient aircraft. He comments that Boeing and Airbus are increasing production rates and speculates on if this is straining world supply chains.

The article explores the Chinese aviation market and efforts by aircraft manufacturers Boeing and Airbus to develop relationships with aviation professionals and members of the industry in China. Topics discussed include state management of economic development, economic competition among foreign companies in China, and demand for passenger aircraft.

The article discusses the single-aisle commercial airliner market and uncertainty regarding its future. Airliner leasing is discussed and prospective actions to be taken by single-aisle airplane manufacturers Boeing and Airbus are contemplated. Industry experts cited include Air Lease Corp. chairman and chief executive officer (CEO) Steven Udvar-Hazy and Boeing Commercial Airplanes President and CEO James Albaugh.

The article reports that FAA's acceptance of passive radio frequency identity tags that are safe to use in flight on aircraft parts and assemblies is expected to help maintenance, repair and overhaul operations reduce costs, cycle times and defect rates. Airbus Industrie SA and Boeing Co. cooperated because they share suppliers for 70% of the parts on their aircraft and have a common interest in improving the accuracy and efficiency of parts identification. Both manufacturers expect to promote the technology using ISO 18000-6 standards.