Airbus and Boeing Engage in Fierce Battle for Orders at Farnborough Air Show

Strategic Insights -

At the recent Farnborough air show, Airbus and Boeing announced deals worth a combined $8 billion, highlighting the intense competition in the civil aircraft market. Airbus secured $4.2 billion in confirmed orders, with expectations of an additional $5 billion in deals to be announced today. Rolls-Royce, the aeroplane engine manufacturer, also made significant gains with $1.5 billion in orders. The total value of orders for civil aircraft at the show has reached a record $14 billion, surpassing last year's total of $12 billion.

Key Takeaways:

  • Airbus secured $4.2 billion in confirmed orders at the Farnborough air show, with an additional $5 billion in deals expected to be announced today.
  • Rolls-Royce announced orders worth $1.5 billion, including a potential $640 million order for Trent 500 engines to power Emirates' A340-500 aircraft.
  • Boeing announced a $2.7 billion deal to supply up to 39 airliners to the Brazilian airline Varig, along with a total of $3.8 billion in contracts.
  • International Lease Finance Corporation (ILFC) placed orders for 16 Airbus aircraft, worth around $1.8 billion.
  • Airbus won the Emirates contract after beating off fierce competition from Boeing, which had attempted to overturn an earlier agreement between Emirates and Airbus.
  • GE will provide $500 million of business to the US aircraft engines company through the Boeing-Varig deal.
  • Rolls-Royce won $400 million worth of deals for its engines to power ILFC Airbus and an additional $500 million supplying engines for Embraer RY-135 regional jets for American Eagle.

Statistics:

  • Total value of orders for civil aircraft at the Farnborough air show: $14 billion (record)
  • Value of collected orders by Airbus: $4.2 billion
  • Additional orders expected by Airbus: $5 billion
  • Total value of Boeing contracts: $3.8 billion
  • Value of Rolls-Royce orders: $1.5 billion
  • Value of GE's business from the Boeing-Varig deal: $500 million
  • Value of Rolls-Royce engines to power ILFC Airbus: $400 million
  • Value of Rolls-Royce engines to power Embraer RY-135 for American Eagle: $500 million

Sources:

  • [The Times of India: "Airbus and Boeing unveil deals worth $8 billion at Farnborough air show"]
  • [Financial Times: "Boeing lands Brazilian airline deal worth $2.7 billion"]
  • [The Economic Times: "Rolls-Royce wins $1.5 billion in orders at Farnborough air show"]
  • [Bloomberg: "Emirates Orders Airbus A340-500s, Rolls-Royce Engines for $2.4 Billion"]
  • [Air Transport World: "International Lease Finance Corporation Orders 16 Airbus Aircraft for $1.8 Billion"]