Categories Analysis

Farnborough 2018: Boeing and Airbus land orders worth billions

The 2018 Farnborough Airshow, a biennial aviation display underway outside of London, has seen top airplane-makers Airbus and The Boeing Company (BA) rake in orders worth over $40 billion. The event will continue through this week and will see aircraft manufacturers, suppliers, airline companies, and heads of military and government divisions come together to discuss new ventures, contracts and defense initiatives.

The airshow, which fosters new ideas and technology, usually sees its biggest deals at the onset. Boeing and Airbus seem to have made the best of this boom. Boeing has secured orders from India’s Jet Airways valued at more than $8 billion. The US planemaker also received orders from DHL for freighters worth $4.7 billion.

Other deals secured by Boeing include one with Qatar Airways valued at $1.7 billion and one with United Airlines which is worth $1.1 billion. On its second day at the show, the company secured an order worth more than $11 billion from a Russian airline.

Boeing’s European competitor Airbus has also added some valuable orders to its kitty. The company struck an $8.8 billion deal with an undisclosed buyer. Airbus secured orders worth $6 billion from Taiwanese company STARLUX and $3.2 billion from Chinese airline Sichuan Airlines. The planemaker is said to be working on around $29 billion worth of deals with Asian carriers.

The aviation industry is seeing good trends in passenger traffic and demand for aircraft orders, but the looming trade war is likely to play spoilsport in all this. The British aviation industry, meanwhile, will see impacts from Brexit. At a time when a significant part of US aerospace production gets takers from abroad, a trade war will cause significant damage. Companies like Boeing, which get good business from China, will be the first victims.

However, setting aside the doomsday predictions, things appear to be going well at Farnborough thus far. According to a report by Reuters, Boeing raised its rolling 20-year industry forecast for passenger and cargo aircraft to 42,700 industry deliveries, up 3% from last year’s estimate of 41,030. This would be worth $6.3 trillion versus $6.1 trillion last year.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top