airlines, air travel, demand, passengers, business, IATA, 2016, Europe, world, RPK, capacity, Alexandre de Juniac

Farnborough Air Show day 1, airlines announced new aircraft orders for more than USD 20 billion.

The bi-annual airshow at Farnborough airport outside London is the world’s largest display of aircrafts, both civil and military, together with the bi-annual Paris Air Show, at Le Bourget airport. The Farnborough Air Show is on during July 16-22 and Standby Nordic will report on relevant news.

Demand for new passenger jets is good

The USD 20 billion orders on new aircrafts announced during Monday at Farnborough confirms demand for new aircrafts is very good, despite uncertainty about Brexit, high oil prices, pressure on airfares and climbing interest rates. The main players are Boeing and Airbus, the two largest aircraft producers, Boeing has just announced a partnership with Brazilian plane maker Embraer and Airbus recently teamed up with Canadian plane maker Bombardier. These two partnerships open new markets for Boeing and Airbus, as they will be able to offer regional and mid-sized aircrafts with 70 to 150 seats, a market that is expected to grow fast.

Airbus beat Boeing on day 1 and orders from the Asia-Pacific region lead the way

Asia-Pacific region is aviation’s biggest growth market according to IATA (International Air Transport Association) and China is expected within 2022 to overtake USA’s role as the largest aviation market in the world. This was reflected by Asian airlines and leasing companies announced the largest orders during day 1 at the airshow.
The battle between Airbus and Boeing, ended with Airbus got 186 orders, ahead of Boeing’s 156 orders for new aircrafts.

The largest deals during day 1 at Farnborough

Many airlines and aircraft leasing companies use Farnborough Air Show as venue to announce new orders for aircrafts and during day 1 orders for no less that USD 20 billion were announced, though keeping in mind aircraft orders are always published with list prices of the aircraft, but Boeing and Airbus normal give 40-60 percent discount on the list prices, depending on order size and customer profile.

The Deutsche Post DHL Group owned cargo integrator DHL ordered 14 new Boeing 777 freighters, valued to USD 4.7 billion, together with an option on another seven freighters of the same type.
Qatar Airways placed an order for five Boeing 777 freighters, valued to USD 1.6 billion.
Jet Airways, from India, ordered 75 Boeing 737 MAX single aisle aircrafts, valued to USD 8.8 billion.
Aircraft leasing firm Jackson Square Aviation ordered 30 Boeing 737 MAX 8 single aisle aircraft, valued to USD 3.5 billion.
United Continental Airlines ordered 25 Embraer E-Jets, for an undisclosed amount.

The new Taiwanese airline StarLux Airlines ordered 17 Airbus A350 wide-body aircrafts, valued to USD 6 billion.
Indian airline Vistara ordered 50 A320neo single aisle aircrafts, by signing up for 13 firm orders and option for another 37, valued to USD 5.5 billion.
Goshawk Aviation Limited, an aircraft leasing company ordered 20 Airbus A320neo (new engine option) single aisle aircrafts, valued to USD 2.2 billion.
Macquarie Finance, ordered 20 Airbus A320neo single aisle aircrafts, valued to USD 2.2 billion.
An unidentified aircraft leasing company signed a MoU (Memorandum of Understanding) with Airbus for no less than 80 Airbus A320neo single aisle aircrafts, valued to USD 8.8 billion.
Jet Blue ordered 60 Airbus A220 single aisle aircrafts, formerly know as Bombardier C-Series, for an undisclosed amount.

A trade war between USA, China and other countries may slow future aircraft sales

Boeing’s CEO Dennis Muilenburg said to Bloomberg news that he is worried about a trade war between USA and China, it can be problematic for Boeing as the aircraft producer base its business on free and open global trade. He is hopeful in solutions are found to overcome the tariffs that have been imposed by USA, China and other countries.

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