Airbus Group CEO Tom Enders told investment analysts on Wednesday that he doesn’t see an impending end to the upward cycle in demand for airliners despite the spate of order cancellations Airbus’s civil division suffered during the first half of the year.
The apparent lack of a cohesive international system for assessing threats in airspace over conflict zones has revealed itself again in differing conclusions reached by major Persian Gulf airlines about the dangers of flying over Iraq.
The 2014 edition of the Farnborough International Airshow has beaten its own record for aircraft and engine orders, with organizers announcing a $130 billion running tally after the first three of the five trade days. Factoring in all provisional orders, AIN’s own analysis puts the estimate at just above $155 billion.
Qatar Airways dominated commercial proceedings at the Farnborough International Airshow yesterday, signing contracts with Boeing for its 777Xs that could be worth up to $37.7 billion, plus another $2.4 billion deal for four 777 freighters.
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.
It might seem only a year or two since Airbus launched the A380 and just months since the mighty, double-deck behemoth entered service, but the European manufacturer has delivered more than 130 since operations began, almost six years ago, in October 2007. The aircraft, which typically accommodate about 500 passengers (depending upon customers’ cabin configurations), have an average daily use of more than 13 hours, says Airbus. Of the 324 examples that had been ordered by late June, the backlog of 192 includes 20 booked this year.
This week’s Farnborough International Airshow promises to be another busy one for dealmakers like Michael Richter, managing director and head of aerospace and defense with investment bank Lazard. Even compared with the periods around the 2012 Farnborough show and the 2013 Paris Air Show, he sees rising levels of mergers and acquisitions (M&A) activity in the commercial aerospace sector. He also anticipates some degree of recovery in defense industry M&A activity, reversing a period of relative inactivity in a sector that has been impacted by uncertainty over military budgets.
Rolls-Royce is confident that other customers will take up the 70 Airbus A350-900XWB and -1000XWB production positions released when Emirates Airline canceled its order on June 1, and says demand remains strong for the new twin-aisle twinjet, which is powered exclusively by R-R Trent XWB engines. The loss reduced the manufacturer’s orderbook by £2.6 billion (excluding the value of “TotalCare” support contracts), or about 3.5 percent.
Boeing sees little chance that it will have to cut production of the 777 during the transition to the 777X, notwithstanding recent conjecture from analysts that a so-called sales “drought” since the launch of the program during last year’s Dubai Air Show could portend a period of market weakness–and a possibility that it won’t find enough orders to maintain its 8.3-per-month rate into 2020.
The mergers and acquisitions (M&A) tide is still rising in the commercial aerospace sector, according to Michael Richter, managing director and head of aerospace and defense with investment bank Lazard.
Airbus A350-900 flight test aircraft MSN3 has completed hot weather testing in Al Ain, in the United Arab Emirates, Airbus announced Wednesday.
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