NEW YORK, March 20 /PRNewswire/ -- Orders for commercial airplanes reached dramatic new levels in 2005, according to a report published by Standard & Poor's Ratings Services today, "Commercial Aerospace Recovery Takes Wing." The two manufacturers that share a duopoly market-Airbus SAS, 80% owned by European Aeronautic Defence and Space Co. N.V. (EADS, A/Stable/A-1) and 20% by Britain's BAE Systems PLC (BBB/Negative/A-3), and Boeing Co. (A/Stable/A-1)-- received a combined total of 2,057 firm orders, net of 83 cancellations. Airbus led with 1,055 units versus Boeing's 1,022. These numbers are far better than the 638 industry orders in 2004 (366 for Airbus and 272 for Boeing) and exceeded the previous record of 1,631 units set in 1989, when McDonnell Douglas Corp. was also in the business. By comparison, orders averaged below 400 per year in a weak 1991-1995 period and about 1,000 annually during a market upturn in the late 1990s and in 2000. "Demand was particularly strong from airlines in Asia and the Middle East, supported by generally healthy global economic activity, growing air traffic, and upward trending financial results of many air carriers in those regions," said Standard & Poor's credit analyst Roman Szuper. Long-term fundamentals for commercial aerospace appear favorable, supported by projected air traffic growth of about 5% per year (6.0%-6.5% in 2006), the report notes. This assumes a continuation of moderate economic growth and no new shocks to the aviation system. Industry demand in the past had been driven by air traffic growth (about 70% of demand), which has typically exceeded economic growth, and the need to replace older planes. The report is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit research and analysis system, at http://www.ratingsdirect.com/. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to . Ratings information can also be found on Standard & Poor's public Web site at http://www.standardandpoors.com/; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. All Standard & Poor's research information is accessible for 24 hours after publication on the public Web site. Members of the media may request a copy of this report by contacting the media representative provided. About Standard & Poor's Standard & Poor's, a division of The McGraw-Hill Companies (MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With approximately 6,300 employees located in 20 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/. DATASOURCE: Standard & Poor's CONTACT: Media Contact: John Piecuch, New York, (1) 212-438-1102; Analyst Contacts: Roman Szuper, New York, (1) 212-438-7813 Web site: http://www.standardandpoors.com/

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