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Airbus and Boeing bag $17 billion of deals in Paris Airshow battle

18 June 2019 18:35 (UTC +04:00)

Airbus and Boeing bagged more than $17 billion in plane deals on day two of the Paris Airshow as their sales teams scrapped for orders after a downturn in business at many airlines and the grounding of Boeing’s top-selling jet, APA reports citing Reuters.

Airbus extended its early lead in orders at the event with a $6 billion deal on Tuesday to sell 36 planes to Philippines airline Cebu Air, including 10 of the new long-range A321XLR model launched on Monday.

The European firm also struck a deal to sell a further 30 A320neo aircraft to Saudi Arabian Airlines, worth $3.3 billion at list prices, while Malaysia’s AirAsia converted 253 A320neo orders to the larger A321neo model. Financial terms of the AirAsia deal were not disclosed.

Boeing, meanwhile, gained a much needed lift after a slow start to the show on Monday as Korean Air committed to buying 20 of the U.S. company’s 787 Dreamliners, worth $6.3 billion at list prices. Air Lease Corp also committed to buying five 787s, worth about $1.5 billion.

Airbus shares were up 0.6% at 1225 GMT, having touched a record high of 126.50 euros in early trade. Boeing shares climbed more than 1% in pre-market dealings.

Despite the flurry of activity, the aerospace industry’s biggest annual event has been quieter than normal, fuelling speculation that a decade-long boom might be coming to an end.

With airlines struggling to contend with overcapacity, slowing economies and geopolitical tensions, some analysts warn Airbus and Boeing could face a growing number of cancellations from their bulging order books.

Boeing in particular is suffering after the grounding of its MAX 737 aircraft in March following two deadly crashes.

The U.S. company was dealt a fresh setback on Monday when its engine supplier revealed a delay affecting its all-new 777X jet. Boeing sales chief Ihssane Mounir said on Tuesday that considering a freighter version of the 777X would be a “natural progression” for the project, but gave no timeline.