Boeing Says US-China Trade Spat a Concern for Aerospace World

Lloyd Doyle
July 18, 2018

The order contest is expected to stretch for the days of the July 16-22 air show, although analysts will be watching closely to see how numerous deals are new, and how many involve adjusting earlier business or switching models - something not always easy to spot at first.

Even before the first displays had taken to the skies over a sun-baked southern England, US aircraft maker Boeing said delivery firm DHL had placed a $4.7bn order for 14,777 freighters, and purchase rights for seven additional freighters.

Goshawk Aviation and GOL also signed orders of the 737 Max, with 20 and 45 being ordered respectively.

The world's biggest planemaker predicted 42,700 industry deliveries over the next two decades, up three percent from its estimate of 41,030 a year ago.

The quintessentially English atmosphere of the Royal International Air Tattoo, where straw-hatted VIPs watch fighters thunder over picturesque Cotswolds villages, gives way on Monday to the Farnborough Airshow, where the hard-nose business deals in the $800 billion aerospace and defence sector will be done.

It followed that up with a US$3.5 billion deal for 30 of its hot-selling single-aisle 30 737 MAX 8 aircraft with USA aircraft leasing firm Jackson Square Aviation, while Qatar Airways finalised an order for five 777 freighters.

DHL Express emphasized that the replacement of 14 older planes with the new Boeing 777Fs offered the company "significant cost- and efficiency advantages". This new order is a major one for DHL, doubling the size of its 777 fleet and giving it access to more markets and customers.

Brazilian manufacturer Embraer was also signing orders today when it finalised a deal to supply United Airlines with 25 E175 regional jets. In many cases, the orders were simply moved from the "unidentified customer" column in Boeing's order book to a new listing under the customer's name. Airbus and Boeing are undergoing an unprecedented order boom fuelled for single-aisle jets driven by fuel-saving planes and growth in air travel, especially Asia. Airbus's USA rival Boeing also announced a series of impressive deals including 14 777s to DHL for Dollars 4.7 billion, 30 737 MAX for Jackson Square Aviation for USD 3.5 billion.

The $23bn AirAsia deal would give a boost to Airbus's slow-selling A330neo wide-body, while adding to the order pile for the popular A320neo narrowbody family.

Exports in aerospace were worth an estimated £30 billion in 2017. At the time of writing, none of the deals are officially closed and are subject to further negotiations. Sources said recently it is in talks for an eye-catching deal with Saudi Arabia.

STARLUX Airlines of Taiwan selected the A350 XWB for its future long-haul fleet, with an MOU for 17 aircraft, comprising 12 A350-1000s and five A350-900s. The order is worth $6 billion at list prices. Sichuan Airlines Corp. will purchase 10 of the widebody planes.

Other reports by Iphone Fresh

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