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Boeing, Airbus Could See China Jet Cancellations

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The Boeing Co. faces a rough year ahead as airlines project $2.9 billion in losses in 2009, with order cancellations likely.
“The outlook is bleak,” said Giovanni Bisignani, director of the International Air Transport Association, in a speech Tuesday. “The chronic industry crisis will continue into 2009 with $2.5 billion in losses. We face the worst revenue environment in 50 years.”
The industry association predicts nearly all regions of the globe will suffer in 2009, with Asia-Pacific carriers getting hit the hardest. That region could see losses of up to $1.1 billion next year.
The Chinese government validated the association’s predictions on Tuesday by urging its airlines to postpone or cancel jet deliveries in 2009. The Civil Aviation Administration posted a statement on its Web site Tuesday which also suggested airlines should consider grounding or selling aircraft, the Wall Street Journal reported.
China’s largest airline by fleet size, China Southern, has a total of 81 aircraft on order with Boeing.
The aerospace company’s shares dropped 4 percent in trading Tuesday. Last month, Boeing warned of potential layoffs in 2009 after saying it will cut 800 defense jobs in Wichita, Kan. next year.

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