Day One Orders Top $50 Billion At Farnborough Airshow
Day one of the 2014 Farnborough International Airshow proved to be a lucrative one for just about all manufacturers of airliners and the engines that power them. An approximate estimate of business announced here yesterday quickly topped $50 billion.
Air Lease Corporation kicked off proceedings with a $6.9 billion launch order for Airbus’s Rolls-Royce Trent 7000-powered A330neo and added a $6.6 billion contract for 60 A321s. Rival leasing group AerCap firmed up an $5.1 billion order for 50 additional A320neos, followed by International Airlines Group, which converted a $1.9 billion worth of A320neo options into firm orders.
Monday was also payday for Boeing, which was especially thrilled to win back the UK’s Monarch Airlines as a customer. Subject to further detailed negotiation, the two sides have provisionally agreed to a $3.1 billion deal for 30 of the new 737 Max 8s. Leasing group Avolon signed a $2 billion commitment for six of the new 787-9 Dreamliners and five more 737 Max 9s. China’s Okay Airways ordered six of the same narrowbody, as well as four 737-800s, and agreed to convert five existing orders for the same type in favor of the larger -900ER as part of a $980 million contract.
Regional aircraft makers Mitsubishi (LoI with Eastern Air Lines of the U.S.), Embraer (order for 50 E2s from Trans States Holdings), ATR (order for 75 ATR 42-500s from Nordic Aviation Capital) and Bombardier all announced new business yesterday. Taking account of options and provisional commitments, this could be worth around another $6.5 billion collectively.
Mexican low-cost carrier VivaAerobus selected Pratt & Whitney’s PurePower PW1100G-JM engines to power the 40 A320neos it has on order, plus options for 40 more.
A day after landing a 200-engine, $2.6 billion order from American Airlines for Leap-1A turbofans to power 100 A320neos, CFM International announced a $3.3 billion deal with easyJet. This covers 200 Leap-1As for its A320neo family and 70 CFM56-5Bs for additional A320ceos. China’s Spring Airlines ordered CFM56-5B engines to power 30 A320ceos in a $620 million contract. CFM followed this with a series of other order announcements.
CFM partner GE Aviation won a $1.4 billion order from Air Lease Corporation for GEnx-1B engines to power 30 Boeing 787s. In a business that underlines the value of the aftermarket, Emirates gave GE a 12-year OnPoint contract for maintenance on GE9X engines powering its Boeing 777X at a price of $13 billion. SriLankan Airlines signed a five-year OnPoint deal covering the CFM56-5B.