Marks The Second Record Year In A Row

Boeing recorded 1,044 net commercial airplane orders during 2006, and for the second year in a row set a Boeing record for total orders in a single year.

The 2006 total surpasses the previous Boeing record of 1,002 net orders in 2005. Gross orders in 2006, which exclude cancellations and conversions, totaled 1,050. Boeing recorded 1,029 gross orders in 2005.

"2006 was another outstanding year for our customers and for Boeing," said Scott Carson, Boeing Commercial Airplanes president and chief executive officer. "Beyond the order totals, we are very excited about the breadth and depth of our 2006 order book. We have secured significant orders from customers around the globe and across our product line as we continue to build a strong, well-balanced backlog."

For the second consecutive year, the 737 program achieved a record with net orders of 729 airplanes. The previous record total for the 737 program was 569 in 2005.

Boeing also had a strong year across the board in twin-aisle commercial airplanes: 157 orders for the 787 Dreamliner program, 76 orders for 777s, 10 orders for 767S, and 72 orders for 747s -- the highest total for the 747 program since 1990 and fifth highest in the history of the program.

Among the orders finalized since the Dec 21, 2006, update were a 25-airplane order of 737s, 777s, and 747s for Korean Air; six 737s for Xiamen Airlines; 10 787s for Jet Airways; 60 737s for Air Berlin; 10 737s for Delta Airlines; and a number of additional orders from unidentified customers.

In 2006, 76 different customers ordered Boeing airplanes, including passenger airlines, cargo carriers, leasing companies, and private customers.

"The strong orders for the past two years are a validation of our strategy of focusing on our customers, simplifying our product and services offerings and transforming our production system," Carson said. "We're bringing the right products and services to the market at the right time, and we remain intensely focused on our customers, on delivering on our promises and on addressing the needs of the marketplace."

Among other notable highlights for Boeing Commercial Airplanes in 2006:

• The 787 program saw all factories begin part production, and the on-time start of major assembly; the Large Cargo Freighter made its first flight and commenced flight testing; and the 787 program celebrated its "virtual rollout"
• The 747-8 Freighter reached firm configuration, and Lufthansa became the first airline to order the Intercontinental passenger version, capping off the strongest order year for the 747 since 1990
• A moving line for 777 final assembly was implemented; the 777 Freighter reached firm configuration; Pakistan International Airways took delivery of the first 777-200LR -- the world's longest-range airliner; and Singapore Airlines took delivery of the 600th 777
• In addition to the 10 orders for commercial aviation customers, the 767 program achieved several major milestones with the airplanes it is providing Boeing Integrated Defense Systems for modification into refueling tankers for Italy and Japan
• Boeing's services business continued to expand through internal growth and strategic acquisitions, such as Aviall and Carmen Systems. Freighter conversions totaled 42 redeliveries in 2006
• The Next-Generation 737-900ER flew for the first time; the first Next Generation 737-700ER entered final assembly; and the 5,000th 737 and 2,000th Next-Generation 737 were delivered
• Boeing Business Jets launched the BBJ3 and began offering VIP widebody airplanes, celebrated the 10th anniversary of the BBJ and accepted delivery of the 100th "green" airplane

Now Boeing and the rest of the market will wait for Airbus to publish its totals for the year. As of the end of November -- the last update to its order list -- Airbus still trails Boeing with 635 orders for 2006. No doubt the company has been pushing hard to close that gap before year's end.

In fact, the Wall Street Journal is reporting Airbus is set to announce a "major order" on Monday. Could it be the wily Europeans are planning a January surprise as they did last year?

Pay no attention to the man behind the curtain...

FMI: www.boeing.com, www.airbus.com