IndiGo, one of India’s largest airlines, has signed a deal with aircraft manufacturer Airbus for a record-breaking 500 planes, making it the largest single-aisle plane deal ever made. The deal, which was announced on the opening day of the Paris Airshow, is worth billions of dollars and confirms a Reuters report made earlier this month. The demand for jets and air defences has been strong, but the industry is facing challenges in its supply chain, such as rising costs, parts shortages, and a lack of skilled labour due to the pandemic.
The Paris Airshow, the world’s largest air show, is taking place at Le Bourget for the first time in four years. French President Emmanuel Macron attended the event, watching a flying display that included Airbus’ latest development, the A321XLR, and the French Rafale fighter jet. Planemakers are arriving with growing demand expectations as airlines rush for capacity to meet demand and help reach industry goals of net zero emissions by 2050.
Industry executives state that there are up to 2,000 jet orders available worldwide in a resurgent commercial jet market, but only a portion of these potential fresh deals will be ready in time for the airshow. IndiGo’s deal highlights the growing importance of India, the world’s fastest-growing aviation market, serving the largest population, to planemakers.
In another key market, Airbus announced that Saudi budget airline flynas had firmed up an order for 30 of its A320neo-family narrowbody aircraft, confirming a Bloomberg report. The air show is taking place amid the conflict in Ukraine, with no Russian presence in the chalets and exhibition halls in contrast to the last event four years ago. A Ukrainian minister told Reuters that Kyiv is in talks with Western arms manufacturers to boost production of weapons, including drones, and could sign contracts in coming months.
Belgium said it would apply to join as an observer the potential successor to the Rafale and multinational Eurofighter, the Franco-German-Spanish FCAS fighter project, despite differences between industrial partners over whether to expand. France’s Thales also announced a contract from Indonesia for 13 long-range air surveillance radars. Looking ahead to the rest of the show, Air India may finalise its recent huge order, split between Airbus and Boeing, as Irish lessor Avolon finalises a deal with Boeing which is having a relatively quiet show after a string of recent orders.
Airbus is seen close to a potentially large deal with Mexico’s Viva Aerobus, but some sources were predicting the volume could be closer to 60 jets than the triple digits first reported, with no guarantee of a result this week. With increased bargaining power at their disposal from tight supplies, airline executives say planemakers are being tougher on price and more circumspect than in previous upcycles. Engine makers are meanwhile sketching bets on fuel-saving technology that will influence how jets evolve next decade.
Original Story at www.reuters.com – 2023-06-19 20:50:00
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