Boeing likely to delay deliveries to Asia due to economic slump<\/p>\n
KUALA LUMPUR (Reuters): The head of Boeing Co said on Saturday
\nthat Asia's financial difficulties might delay airplane
\ndeliveries over the next three years but would have no long-term
\nimpact on the U.S. aerospace giant's business.<\/p>\n
Boeing chairman Phil Condit told a news conference in the
\nMalaysian capital that a trip to Asia had boosted his confidence
\nin the region's capacity to recover from a financial crisis that
\nhas cast a shadow over its economic prospects.<\/p>\n
\"My confidence, if anything, is higher,\" he said after signing
\na 153 million ringgit (US$40 million) agreement to set up a joint
\ncomposite parts factory with Hexcel Corp, Malaysia Helicopter
\nServices Bhd and Sime Darby Bhd.<\/p>\n
Condit said Boeing's investment in the joint venture, which
\nwill make composite parts for secondary structures for Boeing
\ncommercial aircraft and eventually other customers, underscored
\nthe firm's commitment to Malaysia and Asia.<\/p>\n
\"Together we can weather what is a local storm,\" he said.<\/p>\n
Prime Minister Mahathir Mohamad witnessed the joint venture
\nsigning.<\/p>\n
\"What is happening in Malaysia today will not last forever,\"
\nhe said, referring to the slowdown and financial turmoil that
\nhave battered both the ringgit and local shares.<\/p>\n
\"We can make adjustments and I am quite sure that businesses
\nof a long-term nature will eventually find they not only survive
\nbut succeed,\" Mahathir said.<\/p>\n
\"I hope the haze in the financial world as well as the other
\nhaze will disappear,\" the prime minister said, referring to smoke
\nfrom forest fires in neighboring Indonesia last year that covered
\nmuch of Southeast Asia in smog.<\/p>\n
Last month Boeing said it expected to deliver 60 fewer
\nairplanes than previously forecast to Asian customers over the
\nnext three years due to the region's economic woes.<\/p>\n
Boeing said it expected the crisis mainly to affect deliveries
\nof wide-body 747 and 777 jets in 1999 and 2000.<\/p>\n
Philippines Airlines last month moved to cancel four 747-400s
\nand some analysts believe more cancellations or deferrals could
\ncome from other regional carriers.<\/p>\n
Condit was asked to comment on Boeing's assessment now that he
\nhad visited Indonesia and Malaysia this week.<\/p>\n
\"The visit has been very positive. Any airline must adjust to
\ncurrent traffic situations. So we may see some airplanes move
\njust to adjust to the current conditions,\" he said.<\/p>\n
\"But my fundamental assessment has not changed, and when we
\ntalked about the 60 airplanes, that was a macro look at the
\neconomic impact, and really was a delay over the next three
\nyears. But long term we don't see any diminution at all.\"<\/p>\n
The chairman of Malaysian Airline System Bhd told Reuters
\nafter the news conference that his airline would not cancel
\naircraft orders due to the economic slowdown.<\/p>\n
\"Those aircraft that we have, the older aircraft that we have,
\nwe may be selling some of them, or maybe lease out some of them,\"
\nTajudin Ramli said.<\/p>\n
Malaysia Helicopter Services has a 29.5 percent stake in
\nnational carrier Malaysian Airline.<\/p>\n
Each of the four joint venture partners will hold equal stakes
\nin the composite parts company, called Asian Composites
\nManufacturing Sdn Bhd. The factory will be located on a 31-acre
\nsite in northern Kedah state.<\/p>",
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