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AFP
European aerospace giant Airbus scored the first big win at the Farnborough airshow, which opened on Monday facing global economic headwinds triggered by Brexit.
Airbus, which traditionally fights US rival Boeing for blockbuster order announcements at Farnborough, southwest of London, revealed a US$4.4-billion (3.9-billion-euro) firm order from Virgin Atlantic for twelve wide-bodied Airbus A350-1000 jets.
The carrier has agreed to buy eight of the aircraft for deliveries starting in 2019, and four new aircraft from lessor ALC. For its part, Boeing revealed that China’s state-owned Xiamen Airlines had indicated its interest in 30 of its single-aisle twin engine 737 MAX 200 planes worth a total of US$3.39 billion.
The biennial week-long Farnborough show takes place this year amid global turbulence from Britain’s shock EU exit referendum. British Prime Minister David Cameron, attending the opening, hailed the Airbus order, citing the fact that the European planemaker’s wings are built in Britain, while engines come from Rolls-Royce. The announcement is also a vote of confidence in Airbus operations in Britain after Britain voted to exit the EU. Ahead of Farnborough, some airlines had posted profit warnings linked to expected fallout from the referendum outcome. Fred Cromer, president of Bombardier’s commercial aircraft division, said on the sidelines of the show that he did not expect Brexit to have an impact on the Canadian firm, and highlighted that the broader sector enjoys consistent and solid growth in passenger traffic.
Bombardier itself hopes to win fresh orders for its fuel-efficient C Series jetliner at Farnborough as it looks to challenge the dominance of Airbus and Boeing in medium-range, single-aisle aircraft. “I think, like everybody else, that this is going to evolve over time,” Cromer said, when asked about the Brexit impact. “The one statistic I would point to, in terms of aviation, is the passenger growth long term. And it is a very stable year-over-year passenger growth number in that 3.0-4.0 pc range, depending on the year.
“I think our industry is always facing short-term growth issues — but long-term passenger demand is fuelling the orders that you see today and that we expect to come. Bombardier’s wide-seated C Series jet — whose first customer Suisse flies commercially for the first time between Zurich and Paris— is gaining momentum after winning major orders from Air Canada and Delta Airlines in the first half of this year.
Sector forecasts
Boeing meanwhile forecast that passenger traffic would grow by an average 4.8 percent over the next 20 years, while Airbus put the figure at 4.5 percent.The global aerospace industry is dogged by a record backlog for orders of planes, which— alongside weaker demand from airlines— contributed to a 30 percent decline in aircraft purchases last year.
The main centrepiece of Farnborough this year will be F-35 Lightning II stealth fighters— supersonic jets capable of short takeoffs and vertical landing.
The Lockheed Martin-built F-35s— the most expensive aircraft in the world— were due to appear at Farnborough two years ago but were grounded after an engine fire.