Paris aviation deals signal recovery in face of supply challenges
A flurry of dealmaking at the Paris air show has confirmed that the aviation industry is back in business after the Covid pandemic — and that the world’s two dominant plane makers still face a challenge navigating a supply chain that retains the scars of the crisis. Airbus and Boeing had together announced orders for more than 1,200 aircraft by the end of the third day of the event, according to analysis by consultancy IBA. The European group snagged 846 of the total including the largest single commercial jet deal in civil aviation history, Indian low-cost carrier IndiGo’s order for 500 aircraft. Most of the orders — 1,070 — were for single-aisle planes such as the Airbus A320 and Boeing 737 Max, which fly the short to medium-haul routes that have led the travel industry’s recovery. Order backlogs for the two plane makers now stretch out almost a decade. The buying spree has prompted some concerns that airlines are over-ordering to ensure they get scarce delivery slots that are now close to the end of this decade. But Christian Scherer, head of commercial at Airbus, said there was “nothing terribly unusual” and that the orders announced were evidence that “business is back as usual”. “It is good, stable,” he told the Financial Times, adding that the IndiGo order was a “natural continuation of an order flow, a growth and replacement of fleets into the future”. The planes for the Indian carrier will be delivered between 2030 and 2035. Stan Deal, head of Boeing’s commercial aircraft division, said he expected to see a “pretty robust recovery in the market” and a “steady state long-term”. Airbus and Boeing have forecast the need for more than 40,000 new jets over the next 20 years, with roughly half of them for growth and the remainder for replacement as airlines seek to buy more fuel-efficient aircraft to reduce their carbon emissions. Executives believe growth will continue to be strongest in Asia, with a wave of demand for new aircraft notably from India and China. Yet the industry continues to struggle with a shortage of skilled workers and critical materials, which is impeding planned ramp-ups in production.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-06-23/general/paris-aviation-deals-signal-recovery-in-face-of-supply-challenges
https://portal.staralliance.com/cms/logo.png
Paris aviation deals signal recovery in face of supply challenges
A flurry of dealmaking at the Paris air show has confirmed that the aviation industry is back in business after the Covid pandemic — and that the world’s two dominant plane makers still face a challenge navigating a supply chain that retains the scars of the crisis. Airbus and Boeing had together announced orders for more than 1,200 aircraft by the end of the third day of the event, according to analysis by consultancy IBA. The European group snagged 846 of the total including the largest single commercial jet deal in civil aviation history, Indian low-cost carrier IndiGo’s order for 500 aircraft. Most of the orders — 1,070 — were for single-aisle planes such as the Airbus A320 and Boeing 737 Max, which fly the short to medium-haul routes that have led the travel industry’s recovery. Order backlogs for the two plane makers now stretch out almost a decade. The buying spree has prompted some concerns that airlines are over-ordering to ensure they get scarce delivery slots that are now close to the end of this decade. But Christian Scherer, head of commercial at Airbus, said there was “nothing terribly unusual” and that the orders announced were evidence that “business is back as usual”. “It is good, stable,” he told the Financial Times, adding that the IndiGo order was a “natural continuation of an order flow, a growth and replacement of fleets into the future”. The planes for the Indian carrier will be delivered between 2030 and 2035. Stan Deal, head of Boeing’s commercial aircraft division, said he expected to see a “pretty robust recovery in the market” and a “steady state long-term”. Airbus and Boeing have forecast the need for more than 40,000 new jets over the next 20 years, with roughly half of them for growth and the remainder for replacement as airlines seek to buy more fuel-efficient aircraft to reduce their carbon emissions. Executives believe growth will continue to be strongest in Asia, with a wave of demand for new aircraft notably from India and China. Yet the industry continues to struggle with a shortage of skilled workers and critical materials, which is impeding planned ramp-ups in production.<br/>
