Investors and readers are probably aware of production snags that have delayed two next-generation airplanes, Airbus' A380 Superjumbo and Boeing's 787 Dreamliner.

But now there's word of production delays for two existing aircraft, Airbus's A330 and Boeing's 777.

A shortage of seats, toilets, and galleys is slowing down A330 and 777 assembly lines, The Wall Street Journal reported Friday (subscription required). Managers at the world's two rival commercial aviation giants suggest the snags could affect this year's financial results, but neither company has issued an earnings warning.

Shares of Boeing (NYSE: BA) gained $1.87 to $66.56, while shares of Airbus' parent EADS rose 1.27 euros to 14.85 euros on the Paris Exchange, in Friday afternoon trading.

Contractor ramp-up issues

For Boeing and Airbus, the crux of the problem stems from the relatively small size of the contractors producing equipment such as jetliner galleys, toilets and business-class seats, The Journal reported. Stock Analyst C. Leonard Bauer told BloggingStocks Friday the problem Boeing and Airbus face is "an upside problem," but a problem nonetheless.

"It's called the problem of success. Jetliner orders and deliveries have risen more than 40% in five years and contractors are straining to keep up," Bauer said. "It had to happen sooner or later, because it's hard for contractors to in some cases double production of a part in two or three years." Bauer added that he does not have a rating on nor own shares in Boeing or Airbus.

Airbus announced Wednesday that it beat rival Boeing in 2007 deliveries but trailed it in new orders.

Airbus said it delivered 453 planes to Boeing's 441 in 2007, according to a company statement. Meanwhile, Boeing (NYSE: BA) bested European-based Airbus in 2007 net new orders, 1,413-1,341. Airbus' 2007 delivery total was up 19 from 2006's 434. Airbus said it expects to deliver 470 planes in 2008.

"2007 was a challenging year but also successful year for Airbus," Airbus President and CEO Tom Enders said. "We were successful in the market and mastered the industrial challenges of the production ramp up, the timely delivery of the first A380, and the implementation of the Airbus Power 8 turn-around program. 2008 will be as challenging on all fronts. But I am sure that, with the dedication of our people and all involved, we shall master them. On the commercial side, I anticipate that our order intake will be above our deliveries."

Delay city

Airbus has been plagued by a series of production setbacks as it rolls-out two new commercial aircraft deemed critical to the aerospace giant's early 21st century aviation strategy: the 500-seat A380 superjumbo jet and the A350.

Regarding the Dubai Air Show, it looks like Boeing (NYSE: BA) and Airbus are eyeball-to-eyeball, and so far, neither has blinked.

This year's Dubai Air Show has ensured that 2007 will be a record year for commercial jetliner orders, Reuters reported, with the two aerospace giants signing more than $82 billion in orders at the show.

For 2007, Airbus' orders should surpass the 1,111 amassed in 2005, Chief Executive Officer Tom Enders said. Boeing, which had 956 orders through Oct. 6 and does not forecast orders, is within 66 planes of having its third straight record year, Bloomberg News reported.