The 2018 Farnborough Airshow kicked off with a flurry of orders as the year’s largest aviation show opened southwest of London on Monday.
As usual, the competition between rivals Airbus and Boeing is expected to produce one of the top commercial aviation storylines from the biennial show, which alternates yearly with a sister show near Paris.
Bloomberg News notes “billions of dollars are at stake as the world’s largest planemakers … Duel over orders this week at the Farnborough.”.
“Beyond the order avalanche, manufacturers, suppliers and airlines use the event to haggle over contracts and float ideas for new planes and ventures,” Bloomberg adds. “Military chiefs and governments hammer out arms deals and announce defense initiatives. Farnborough … Is also a showcase for new technology and ideas, from flying taxis to space flight.”.
The show runs through Sunday, though it opens to the public only for the weekend after beginning with several “trade” days for industry insiders. Typically, the biggest deals tend to come at beginning of the shows.
Already, a number of orders have been announced Monday at Farnborough.
Boeing landed a deal with cargo carrier DHL for 14 Boeing 777 freighters and options for more that would be worth $4.7 billion at list prices, according to FlightGlobal.
Airbus announced a mix of orders – some firm, some promised – that would be worth tens of billions of dollars at list prices. Among those were deals for A350s for Taiwanese start-up carrier STARLUX and an order for 10 Airbus A350s for China’s Sichuan Airlines. Airbus also announced a series or deals – some MOUs and some firm orders – for nearly 150 of its Airbus A320neos. The biggest of those were a MOU for 80 of the jets by an “undisclosed” aircraft lessor and a “letter of intent” by India’s Vistara for 50.
Here are some of the other top storylines coming out of the airshow on Monday, as reported from a variety of global news outlets.
The Associated Press.
“Aviation is soaring: Passenger traffic is up, fuel prices are under control and rising demand from Asia is driving aircraft orders. So what could possibly go wrong? One big thing: A trade war.
“Aircraft makers at this week’s Farnborough International Airshow, a biennial extravaganza where billions of dollars of planes and parts are bought, say thousands of jobs are at risk in this most international of industries as U.S. President Donald Trump threatens to raise tariffs on a variety of goods and other countries prepare to retaliate.
“While Trump has said trade wars are ‘good and easy to win,’ aviation experts say American companies like Chicago-based Boeing will take the first hit because most of U.S. aerospace production goes to foreign buyers.”
FULL STORY: Aviation booming, but trade war threatens.
The British broadcaster took a broad look at the show’s opening day. But, perhaps unsurprisingly, Brexit was a major them of the network’s coverage. The network writes:.
‘But this year fears about the future after Brexit are looming, and for many people will dominate gossip in the plush chalets and meeting rooms. Paul Everitt is head of ADS Group, which represents the UK aerospace, defence and space sectors. He insists that any failure to agree a good deal on Brexit will hurt the sector. The current uncertainty is already taking its toll, he thinks.”
FULL REPORT: Farnborough Airshow: Brexit and bulging order books dominate.
The London newspaper also takes abroad look at the show. Of particular interest to U.S. Readers could be a new order from an expected start-up carrier to be launched by JetBlue founder Dave Neelemam. The Telegraph writes:.
“Farnborough is the first such event since Airbus and Boeing shook up the industry by agreeing to absorb key commercial programmes of smaller rivals Canada’s Bombardier and Brazil’s Embraer as they prepare for future competition from China.
The result should be a fierce contest for sales in the 100-150-seat sector even before Boeing closes its Embraer deal.
A new airline, Moxy, is expected to confirm a large order for the rebranded Airbus A220, the former Bombardier CSeries.”
FULL REPORT: Boeing kicks off Farnborough Airshow with £3.6bn DHL 777 deal.
The wire service notes that the day began with numerous big orders that continue a “decade-long boom” for the big jetmakers. But could there be a hitch? Reuters writes:.
“Higher oil prices, rising interest rates, global trade tensions and uncertainty over Brexit have all raised concerns that demand may slow.”
“But business was brisk on the first day of the July 16-22 air show, though analysts will be watching closely to see how many of the deals are new, and how many involve adjusting earlier business or switching models – something not always easy to spot at first.”
FULL REPORT: Boeing kickstarts air show with order for jets worth $4.7 billion.
The Wall Street Journal.
The U.S.-Based business daily says that good times have come with a tricky downside for the world’s big aircraft makers: keeping up with demand. The Journal writes:.
“Boeing and Airbus swamped with orders for new jets, are struggling to deliver them all on time — in some cases angering customers and delaying payments.”
“Airbus has missed a number of deadlines for deliveries, forcing airline customers to find alternatives, change routes or cancel flights. It has delivered fewer planes than it did by this time last year, despite promising 80 more this year.”
FULL REPORT: Boeing, Airbus Strain to Deliver the New Jets They Have Promised.