Paris Air show returns as Boeing, Airbus race to increase production

A lot has changed in the four years since one of the aviation industry’s biggest air shows took place in person.

COVID-19 pandemic has devastated travel demand and airline industry shed thousands The increasing number of experienced workers and the roller coaster appetite for new jets wreaked havoc on the production rate of new aircraft.

After all, the Paris Air Show is a trade fair where companies get the chance to showcase their new products. technologycivil and military aircraft, and strike pacts – returned on Mondays during the period. Rapid increase in demand for air traveland Airlines hungry for jets to feed it. The problem is, BoeingAirbus and its numerous suppliers can catch up.

“This is putting pressure on the order book, creating upward momentum in used aircraft lease prices and forcing airlines to compromise,” said Andy Cronin, chief executive of aircraft lessor Avolon. .

Aviation analytics firm IBA estimated last week that around 2,100 aircraft could be ordered during the show as airlines replace older aircraft and prepare for an increase in air travel in the future.

this year, Boeing Record large orders or pre-contracts from customers. united airlinessaudia and new Saudi airline Riyadh Air.Air India’s bulk order earlier this year included both boeing and airbus Jet.

Turkish Airlines’ chairman told reporters last month that the airline will order about 600 wide-body and narrow-body planes. The order is the largest ever for a single airline, but it’s unclear if it will make it in time for the show.

IBA chief economist Stuart Hatcher said in his June 15 forecast: delta airlinesMalaysia Airlines and Air France-KLM Royal Dutch Airlines are possible buyers, though the timing is not yet clear. He said AirBaltic could also consider expanding its Airbus A220 fleet.

“Given the political climate, it may be too early to make a decision about China’s expansion, but I wouldn’t be surprised if there were additional orders,” Hatcher said.

A major challenge for manufacturers today is increasing production. Slots for narrow-body planes like the Boeing 737 and Airbus A320 have been sold out for years.now long distance travel Airlines are also back, and some may be looking to expand their fleets of large long-range jets.

But with Boeing, Airbus and a network of suppliers around the world looking to ramp up production, customers around the world are having to wait longer than expected for new aircraft. As a result, airlines have limited supply capacity and air fares remain high.

Qantas Chief Executive Alan Joyce told CNBC last week that he expects supply chain problems to persist through 2025.

Boeing and Airbus are scrambling increase production rate We will meet that demand for the next few years.

Production delays have also pushed up lease rates for both new and older planes as airlines look for other opportunities to increase flights.

Lease prices for the new Boeing 737 Max 8 aircraft were around $350,000 a month in July, up from $305,000 in January 2020, when the pandemic began, according to IBA estimates. . The price of the new Airbus 320 will go from his $325,000 during this period to his $355,000. Older versions are close to pre-pandemic levels.

“People just want their own jet,” said Richard Aboulafia, managing director of Aerodynamic Advisory.