New orders and supply chain progress as Paris Airshow grapples with pandemic aftermath

The first Paris Airshow in four years has clocked up billions of dollars in commercial jet orders and offered some respite for suppliers as air travel springs back sharply from the pandemic. The industry returned to Le Bourget with high expectations of commercial orders and low expectations regarding the supply chain, but generated a more balanced picture on both fronts. Announced orders reached near-record levels but were heavily dominated by two airlines leading the charge in India, the world's fastest growing market: IndiGo and Air India. Airbus and Boeing collectively unveiled orders or commitments for some 1,100 jets, with Airbus at around 830 jets, led by a 500-plane deal with IndiGo. But these fell short of some market forecasts of 2,000 orders, to the relief of some analysts who noted a less brash and more business-like tone than previous shows, from an industry scarred by its near-collapse during COVID-19. India's economic growth and growing middle class have made it the latest frontier for aviation deals worth tens of billions of dollars, though exact prices were not disclosed. "That market is going to feed a lot of players in our industry, and we'd like to be the first one there for a long time, barring unforeseen events," Airbus Chief Commercial Officer Christian Scherer said. A total of 970 orders from two Indian carriers showed airlines willing to lock in positions for the next decade and manufacturers building a foundation for rising output rates. The IndiGo deal also highlighted the growing importance of the so-called sale-and-leaseback model, a popular aircraft financing method that requires a constant flow of new jets. Under such deals, freshly delivered jets are sold by airlines to leasing companies, rented back and then operated for six years or more before being moved on to another operator.<br/>