Farnborough Airshow Sees Surge in Aircraft Orders

Strategic Insights -

The Farnborough International Airshow has witnessed a surge in aircraft orders, with carriers from the Middle East, Asia, and South America leading the charge. Despite the gloomy backdrop of military aircraft orders being hammered by government spending cuts in Europe and the US, the civil aviation industry is showing signs of recovery. Analysts believe that airlines are taking a risk by placing orders, indicating that they expect the global economy to be on an upward trajectory in two years' time.

Key Takeaways:

  • The value of aircraft orders at the Farnborough Airshow has surpassed $25bn, with carriers from the Middle East, Asia, and South America leading the charge.
  • The surge in orders comes despite the gloomy backdrop of military aircraft orders being hammered by government spending cuts in Europe and the US.
  • Analysts believe that airlines are taking a risk by placing orders, indicating that they expect the global economy to be on an upward trajectory in two years' time.
  • The civil aviation industry is expected to return to profit this year, with the International Air Transport Association forecasting a return to profit after a $9bn loss in 2009.
  • Aircraft leasing companies are also back in the frame at Farnborough, with companies such as RBS Aviation Capital placing orders for 52 Airbus A320 family planes and 43 Boeing 737s.
  • Middle Eastern carriers, including Emirates and Qatar Airways, have become major buyers of commercial aircraft as they seek to use their geographical position to build a global network.
  • Boeing's 787 Dreamliner, the aircraft maker's riposte to the Airbus A380 superjumbo, made its British debut at the airshow, with the first 787 due to be handed to Japan's All Nippon Airways this year.

Statistics:

  • The value of aircraft orders at the Farnborough Airshow has surpassed $25bn.
  • The civil aviation industry lost over $9bn in 2009, but is expected to return to profit this year.
  • Aircraft leasing companies have placed orders for 52 Airbus A320 family planes and 43 Boeing 737s.
  • Emirates Airline has placed an order for 30 Boeing long-range 777-300 aircraft, worth over $11bn.
  • Qatar Airways has ordered two Boeing 777-200 aircraft, worth $501m.
  • The first 787 Dreamliner is due to be handed to Japan's All Nippon Airways this year.

Sources:

  • Richard Wachman and Dan Milmo, "Farnborough Airshow: £16bn in deals as carriers snap up jets," [The Independent], (no date)
  • Airbus, [Airbus website], (no date)
  • Boeing, [Boeing website], (no date)
  • International Air Transport Association, [IATA website], (no date)
  • RBS Aviation Capital, [RBS Aviation Capital website], (no date)