Airbus Dominates Subdued First Day at Paris Air Show
With Boeing on the sidelines, Airbus had a clear runway on day one at Le Bourget. The industry's cautious footing speaks volumes.
The sunny skies on Monday didn't match the mood on the ground on day one of the Paris Air Show. Last week's crash of an Air India jet upended the carefully curated plans of Boeing and several other firms at the biennial gathering of the global aerospace industry.
In light of the tragedy – which remains under investigation – the U.S. planemaker trimmed back its program and is adopting a far lower profile than expected just a week ago.
A Boeing source told Skift that the company's focus is on supporting its customers, rather than announcing orders. Boeing CEO Kelly Ortberg canceled his visit — a sign of just how limited the company's presence would be.
GE Aerospace, which made the engines on the ill-fated Air India plane, has also postponed some planned activities. The cause of the crash remains unknown, with authorities currently analyzing data from the black box data recorder.
Orders at Airbus
The state of play over at the Airbus chalet was more in keeping with a traditional show day. A steady stream of announcements saw the European firm win deals over Boeing and smaller rival Embraer.
The big long-haul news was from Riyadh Air, with a firm order for 25 Airbus A350-1000 aircraft. The Saudi start-up carrier has options for up to another 25 planes.
The announcement follows months of speculation. Speaking to Skift earlier this year, Riyadh Air CEO Tony Douglas confirmed that the airline had approached Airbus and Boeing for proposals for extra-widebody jets.
As of the end of May, the A350 has almost 1,400 firm orders from more than 60 customers. Other major operators of the aircraft include British Airways, Cathay Pacific, and Singapore Airlines.
The other major deal of the day for Airbus was a brand-new customer. LOT Polish Airlines placed its first Airbus order for the A220. The firm commitment will see 20 A220-100s and 20 of the larger -300 variant heading to the Polish flag carrier. The terms of the deal allow options for up to 84 planes.
Michał Fijoł, LOT CEO hinted that the airline may exercise these rights once a major new international airport opens in Warsaw. The A220s will gradually replace LOT's existing regional fleet of Embraer planes.
Elsewhere, in a day dominated by Airbus, Japan's ANA Holdings finalized terms for a major new agreement. It signed a firm order with Airbus for 24 single-aisle A321neo and three A321XLRs.
The deal covers 14 additional A321neo for All Nippon Airways (ANA) as well as 10 A321neo and three A321XLR for low-cost subsidiary Peach.
A Different Show Rhythm
With one of commercial aviation's two giants taking a step back, the usual air show cadence is absent. Some Boeing announcements are likely to be deferred.
Given the enormous order backlog, a slight delay in formally announcing the deals is unlikely to impact the timeline for delivering new aircraft.
Boeing has more than 6,000 commercial aircraft on order, while Airbus has more than 8,000. Demand isn't the issue – it's making the planes to specification and getting them to customers that's proving problematic.
Airbus wrapped up day one with a total of 132 firm orders. Day two is likely to follow a similar playbook. With Boeing understandably opting for a lower profile, it offers the European firm an even greater stage.
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
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