Leahy: 'Incentives' Behind 737's Sales Success

Airbus’s chief salesman John Leahy has expressed concern that the A320 model has been soundly beaten in terms of orders so far this year by its rival, the Boeing 737. However, he suggests that the market’s shift is a result of Boeing’s sales tactics as the airframer looks to underpin its decision to raise 737 output. “Two out of three orders this year have gone to the 737,” says Leahy, who is Airbus’s chief operating officer, customers. “I don’t like to see us down at 33% market share.” Leahy told an EADS investor forum in Toulouse on Nov. 16 that he believes Boeing’s recent success in the single-aisle market is connected to the fact that his rival “is getting a little interested in increasing production. They’re offering leasing companies, and some of their customers, incentives to place orders now. We’ve resisted the temptation to chase after them,” he says. However, Leahy warns that if the order market share stays the way it is to the end of the year, “we’ll have to do something about it.” The A320 family firm backlog stands at almost 2,300 aircraft, and production is currently ramping up through 36 a month to reach a record 40 a month by early 2012. Leahy says that it “has crossed our mind” that once production has stabilized at this rate, “if the demand is there, you could draw a scenario for how it could go higher.”