The Paris Air Present returns as Boeing and Airbus compete for manufacturing will increase
An employee works at the Airbus A350 assembly site in Colomiers near Toulouse in southwestern France, December 9, 2022.
Valentine Chapuis | AFP | Getty Images
Much has changed in the four years since one of the aviation industry’s largest air shows took place in Presence.
The Covid-19 pandemic crushed travel demand, the airline industry shed thousands of experienced workers and the rapid appetite for new jets wreaked havoc on new aircraft production rates.
Finally, the Paris Air Show – a trade event giving companies a chance to showcase new technology, commercial and military aircraft and strike deals – returns on Monday as demand for air travel surges and airlines starve for jets to meet that demand cover up . The question is whether BoeingAirbus and its numerous suppliers can catch up.
“It’s putting pressure on order books – it’s leading to an upward trend in used aircraft leasing rates and forcing airlines to make compromises,” said Andy Cronin, CEO of aircraft leasing company Avolon.
Aeronautics analysis firm IBA last week estimated orders for about 2,100 planes could come in during the show as airlines replace older planes and prepare for future growth in air travel.
over the last year, Boeing has recorded large orders or pre-agreements from customers incl United AirlinesSaudia and new Saudi airline Riyadh Air. Air India’s major order earlier this year included both Boeing and Airbus jets.
Turkish Airlines CEO told reporters last month that the airline plans to order around 600 aircraft, both widebody and narrowbody. The order would be the largest ever received by a single airline. However, it is not clear whether this order would come about in time for the fair.
That’s what IBA chief economist Stuart Hatcher wrote in a June 15 forecast Delta Airlines, Malaysia Airlines and Air France-KLM could be buyers, but the timing is not yet certain. Air Baltic could also look to expand its Airbus A220 fleet, he said.
“Given the political climate, it may be too early to call for Chinese expansion, but I wouldn’t be surprised to see any top-up orders coming in,” Hatcher wrote.
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The biggest challenge for manufacturers now is to increase production. Seats for narrow-body aircraft such as the Boeing 737 and Airbus A320 have been sold out for years. With long-haul travel now returning, some airlines may also look to expand their fleets of larger long-haul jets.
But customers around the world have had to wait longer than expected for new planes as Boeing, Airbus and a network of suppliers around the world try to ramp up production. As a result, airline capacity is limited, which keeps airfares high.
Qantas CEO Alan Joyce told CNBC last week that he expects supply chain problems to persist into 2025.
Boeing and Airbus are scrambling to increase production rates in the coming years to meet this demand.
Production delays have also pushed up lease rates for new and older planes as airlines look for other ways to boost their flights.
The IBA estimates that new Boeing 737 Max 8 aircraft will lease for about $350,000 a month in July, compared to $305,000 in January 2020, when the pandemic began. New Airbus 320s cost US$355,000, up from US$325,000 during the period. Older versions are close to pre-pandemic levels.
“People just want their jets,” said Richard Aboulafia, managing director of AeroDynamic Advisory.