While Boeing and Airbus compete vigorously for passenger-jet sales, a confluence of luck (good for Boeing, bad for Airbus) and smart planning has left Boeing the virtual sole supplier of new air cargo jets. Delays and canceled orders have marred production of Airbus’ A380 freighter, which had been meant to assault Boeing’s 90% control of the air freight market.
In the aerospace industry, it’s usually the airlines and aircraft leasing companies that dictate pricing. But now, as Airbus struggles, deals are being done on Boeing’s terms. With newfound pricing power, Boeing will enjoy higher margins on its new freighter sales. That will mean robust results for Boeing commercial airplane sales and will help make 2007 a banner year for the Chicago-based aerospace giant.