Boeing and Airbus have announced additional orders at the Paris Air Show, following their previous big announcements. However, analysts have noted that there hasn’t been much new in terms of orders at the air show. Bank of America analyst Ronald Epstein stated that major announcements, such as Boeing and Airbus’ Air India order, were previously announced. Analysts at Third Bridge also called new jet orders at the show “all but irrelevant” in the short to medium term, as supply-chain challenges persist and deliveries remain in focus.
Despite the challenges, both Boeing and Airbus, along with their jet engine suppliers RTX and General Electric, continue to highlight a strong demand outlook, which helps offset production and certification issues. The air show has put India in the spotlight, with flag carrier Air India and its budget rival IndiGo making headlines due to the robust growth in the nation’s air travel market.
In terms of orders, Boeing announced eight new aircraft orders from India’s new Akasa Air, Air Lease, and Luxair. This followed the news that Air India has finalized a previously reported order for up to 290 new Boeing jets, including 737 Max jets and 787 Dreamliners. Airbus, on the other hand, announced that air leasing firm Avolon has signed a nonbinding agreement to order 20 A330neo aircraft. Airbus also confirmed that Air India has firmed up a prior order for 250 jets, including 210 A320/A321 narrowbodies and 40 A350 widebodies. Additionally, Airbus disclosed an order for 500 A320 narrow-body jets from IndiGo, which is the biggest commercial jet deal ever.
Despite the challenges in the aerospace supply chain, both Boeing and Airbus are racing to increase production to meet the strong demand from airline customers. Suppliers GE and RTX are working to fix durability problems with their respective Leap and GTF engines for the 737 Max and A320neo jets. During the air show, GE and RTX highlighted improvements on the Leap and GTF programs. Pratt & Whitney, a jet-engine unit of RTX, also reported “solid progress” in the aerospace supply chain.
Boeing stock fell near a buy point, losing 0.4% to 211.60, while Airbus shares fell 1.3% on Wednesday. Both companies continue to face challenges in their supply chains due to the Covid-19 pandemic and the Russia-Ukraine war, which have caused major supply bottlenecks. Shortages of raw materials and labor remain a challenge. However, the demand for commercial aviation is gaining pace after the severe impact of the pandemic. Boeing’s new 2023 Commercial Market Outlook estimates that global airlines will require 42,595 new jets through 2042, which is 1,425 more than previously predicted.
In related news, Spirit AeroSystems, which makes fuselages for the Boeing 737 Max, remained roughly unchanged at 29.56 after experiencing a 4.4% tumble on Tuesday.
What factors have contributed to the lack of significant new jet orders at the Paris Air Show compared to previous announcements?
Additional orders at the Paris Air Show, while Airbus announced eleven. However, analysts have pointed out that there haven’t been many new orders at the show compared to previous announcements. Ronald Epstein, an analyst from Bank of America, noted that major announcements such as the Air India order were already known. Analysts at Third Bridge also believe that new jet orders at the show are not significant in the short to medium term due to supply-chain challenges and a focus on deliveries.
Despite these challenges, Boeing, Airbus, and their jet engine suppliers RTX and General Electric remain optimistic about the future demand for aircraft, which helps to offset production and certification issues. The air show has brought attention to India, as national carrier Air India and budget airline IndiGo have made headlines with their strong growth in the country’s air travel market.
In terms of specific orders, Boeing announced eight additional orders at the show while Airbus announced eleven.
It’s impressive to see Boeing and Airbus continue to secure orders at the Paris Air Show despite the existing supply chain challenges. This shows their resilience and ability to adapt to the ever-changing industry landscape.
Despite the supply chain challenges faced by Boeing and Airbus, their ability to secure new orders at the Paris Air Show showcases their resilience and the confidence of the industry in their products.