Airbus announces deals with Chinese, Indian and Taiwanese airlines

LONDON: Boeing Commercial Airplanes CEO, Kevin McAllister (left) looks on as Qatar Airways CEO, Akbar Al Baker announces the purchase of planes for their cargo department at the Farnborough Airshow, south west of London yesterday. —AFP

LONDON: The world needs to produce 43,000 new aircraft over the next two decades to meet booming demand, Boeing's CEO forecast here on Sunday. Dennis Muilenberg, chief executive of the US aerospace giant, revealed the outlook upgrade to reporters in London before the sector's Farnborough Air Show that yesterday.

"We continue to see the aerospace market grow very strongly," said Muilenberg. "We see $8.1-trillion marketplace in the next ten years" for commercial, defense and services, he added. "We further increased our estimates in the next 20 years. "We expect the world to need roughly 43,000 new commercial airplanes. That's up from last year's estimates."

Boeing will publish exact details of its latest outlook today, the second day of the Farnborough event held southwest of London. European arch-rival Airbus had forecast last week that the world's passenger fleet would more than double to 48,000 aircraft over the next 20 years, on the back of keen demand from emerging economies and low-cost airlines.

In a revised market outlook, Airbus had put the value of nearly 37,400 new aircraft required to meet global demand at $5.8 trillion by 2037. In 2017, Airbus had estimated the world would need 35,000 new planes by 2036, valued at $5.3 trillion. Airbus and Boeing meanwhile continue their head-to-head dogfight at the biennial Farnborough event, locked in a battle for lucrative multi-billion-dollar jet orders. Airbus strikes deals in China, India amid Brexit concerns

Upbeat note

European aerospace giant Airbus announced deals with Chinese, Indian and Taiwanese airlines on yesterday, kicking off the Farnborough airshow in Britain on an upbeat note despite concerns about the effects of Brexit.

China's Sichuan Airlines said it will be buying 10 A350 long-haul planes with a list price of $2.8 billion (2.4 billion euros), while India's Vistara signed a letter of intent to purchase 13 single-aisle A320neo aircraft. Taiwan's Starlux Airlines, which is developing a network across Asia and North America, said it had signed a memorandum of understanding for the purchase of 17 Airbus planes -- 12 A350-1000s and five A350-900s.

The Airbus deals announced at Farnborough, southwest of London, would add up to more than $17 billion at catalogue price for the planes if all orders are confirmed and prior to large discounts traditionally handed to purchasers.

Airbus's US rival Boeing also announced a series of impressive deals including 14 777s to DHL for $4.7 billion, 30 737 MAX for Jackson Square Aviation for $3.5 billion.

"We continue to see the aerospace market grow very strongly," Boeing's chief executive Dennis Muilenberg said on the eve of the Farnborough show, echoing similar comments by Airbus. But Farnborough is taking place in the shadow of a looming trade war between China and the United States as well as Britain's stalled negotiations to exit the European Union. Airbus, which employs some 15,000 people in Britain, has warned it would reconsider investments in Britain if it crashes out of the European Union next year with no deal.

Airbus chief executive Tom Enders last month said the government had "no clue" over its Brexit plans.

After Prime Minister Theresa May unveiled more conciliatory proposals last week for Britain to retain strong trading ties with the EU after Brexit, Enders however said that the government was now "going in the right direction". He urged EU negotiators in Brussels and other European countries to be "similarly pragmatic & fair".

Organizers also warned that aircraft could stop flying if May fails to clinch an adequate Brexit deal with Brussels. "Our worst case scenario is genuinely-and it is not alarmist or scare mongering-that aircraft will not fly," said Farnborough International chairman Paul Everitt, who is also head of aerospace, defence and space trade body ADS.

May sought to play down concerns with an optimistic message in her inaugural speech at the show.

"We're leaving the European Union and forging a new future for our country and, as we do so, want to ensure that the UK remains one of the best places in the world for aerospace companies to do business," she told participants. She said Britain wanted to "continue as world leaders in innovation" and announced £343 million ($456 million, 389 million euros) in public-private investment in innovative research and development, including new electric aircraft technology. - AFP