Farnborough recap 15 July
Farnborough sales slow from 2015
Combined sales of US$61.8 billion is nothing to sneeze at, but it’s almost half as much as the US$107 billion sold by Airbus and Boeing at last year’s Paris Airshow, the sister event to Farnborough.
Weighing on sales this year at Farnborough were a number of factors including Britain’s exit from the European Union and the fact that low-cost carriers have already ordered hundreds of new planes and are still trying to digest those purchases and there are signs passenger growth may be slowing.
Airbus topped rival Boeing with the European plane maker scoring 279 orders and commitments valued at US$35 billion at list prices, which no one pays, with demand led by its largest version of its single-aisle A320. Boeing said it had announced orders and commitments for 182 aircraft worth US$26.8 billion.
As is common at these events, plane makers put on a brave face and always speak in glowing terms about their successes at the show.
“As the birthplace of British aviation, there are few better backdrops to celebrate the accomplishments and wonders of the aerospace industry and mark our centennial than the Farnborough Airshow,” said Boeing chairman Dennis Muilenburg. “Throughout the show, we demonstrated and discussed our innovative and cost-effective products and services and the tremendous value they provide our commercial and defence customers.”
“On the commercial side of the business, we were pleased at the confidence our customers displayed in our portfolio of airplanes and services with significant orders and other announcements,” Muilenburg said.
John Leahy, Airbus’ chief operating officer for customers said: “Our orders this week at Farnborough confirm a buoyant industry in which we have once again surpassed our competitor. In addition, airlines upsizing to the A321neo shows that this aircraft is the undisputed ‘middle-of-the-market’ champion.”
MTU reports US$1.1 billion in orders
MTU Aero Engines of Germany reported it racked up orders worth around US$1.1 billion at Farnborough with the PW1000G family of geared turbofan (GTF) engines “doing particularly well”.
“The geared turbofan technology continues to be in very high demand among airlines,” says MTU CEO Reiner Winkler. “For MTU, the GTF will be the most important propulsion concept of the future. With our high market share in programs for short and medium-range aircraft as well as regional and business jets, we also stand to benefit from the aftermarket business in future,” Winkler added.
The biggest contract was awarded by Hungarian carrier Wizz Air; taken together with the orders and options placed by German airline Germania, AerCap Holding, the world’s largest aircraft leasing company and a unnamed leasing company, a total of 251 aircraft powered by PurePower PW1100G-JM engines were purchased for the carriers’ A320neo fleets.
Contracts were won also for the PW1200G and PW1900G variants for Mitsubishi’s MRJ90 regional jets and the new generation of Embraer’s E-Jets, respectively. As the first European customer, Swedish lessor Rockton signed a letter of intent to buy 20 Mitsubishi MRJs. Embraer likewise received orders for 20 aircraft. Customers are Arkia Israeli Airlines and Indonesian carrier Kalstar Aviation.
CFM sells US$8.2 billion in engines
CFM International announced it signed orders, commitments, and long-term service agreements for a total of 565 engines with a value of US$8.2 billion at the 2016 Farnborough Airshow. Deals signed included: AirAsia for 200 LEAP-1A engines; Air Europa for 40 LEAP-1B engines, along with a long-term services agreement; Asiana for 50 LEAP-1A engines, along with a long-term services agreement; AWAS for 20 CFM56-5B engines; CALC for 40 CFM56-5B engines; Standard Chartered for 20 CFM56-7B engines; TAP Portugal for 83 LEAP-1A engines; TUI Group for 20 LEAP-1B engines; K. Royal Navy for 18 CFM56-7B engines for P-8A military aircraft; WOW air for 8 CFM56-5B engines; plus the airline has chosen the LEAP-1A to power three leased A320/A321neo aircraft.