Farnborough Airshow wrap-up

Eleanor Steed
By Eleanor Steed July 20, 2018 09:24

Farnborough Airshow wrap-up

The Farnborough 2018 Airshow was stolen by freighter orders, proving to many that the air cargo market is restoring to strength. We could therefore argue that Farnborough 2018 further shows that carriers such as Emirates (as one major example) should strengthen, the airline, with premium economy finally being rolled out, coupled with recovering belly cargo/freight load factor should show better results before long, as too should other majors such as SIA, Cathay and the like. But on the showground, there remains a great deal of worry about what the future holds and that, more than anything else is why so many “orders” remain undisclosed and/or at MOU stage.

At the show:

Airbus won new business for 431 commercial aircraft; Airbus came into the show already with 177 Single Aisle and 84 Widebody orders in 2018, complemented by a pre-show order for 60 A220-300s, the latter bringing the pre-show intake to 321 aircraft. During the show the company won further new business for 431 aircraft (93 firm orders and 338 MoUs). These 431 commitments comprise 60 A220-300s, 304 A320 Family aircraft, 42 A330neos and 25 A350 XWBs. Notably, the 42 commitments for the new A330neo includes both the -800 and -900 models. Following these announcements at Farnborough, Airbus increased its grand total for the year to 752 aircraft (354 firm orders and 398 MoUs). The 752 commitments in 2018 comprise: 120 A220s; 481 A320 Family; 56 A330 Family, 75 A350 Family and 20 A380s.

Boeing announced a total of $98.4 billion in orders and commitments for commercial airplanes at list prices, announcing 673 orders and commitments in total, reflecting a continued resurgence in demand for freighters and strong order activity for the 737 MAX and 787 passenger airplanes. Boeing secured 48 orders and commitments for the 777F, five for the 747-8F, reflecting continued strengthening in the cargo market globally. There were 52 orders for the 787 and 564 for single-aisle 737 MAX, including a major commitment from VietJet for 100 airplanes and strong demand for the largest variant of the MAX family, with 110 orders and commitments for the 737 MAX 10. On the services side of the business, Boeing secured commercial and government customers including Antonov, Atlas Air, Blackshape, Cargolux, Emirates, EVA Airways, GECAS, Hawaiian Airlines, International Water Services, Malindo Air, Okay Airlines, Primera Air, Royal Netherlands Air Force, United States Air Force, WestJet and Xiamen Airlines.

At the show, Boeing also revealed its 2018 Commercial Market Outlook, raising its 20-year outlook for commercial airplanes and services to $15.1 trillion. The global market is forecast at almost 43,000 new airplanes, valued at $6.3 trillion, and demand for $8.8 trillion worth of commercial services through 2038.

GE Aviation and its joint venture CFM received US$22B in orders/commitments at Farnborough Air Show. Engine orders and commitments included more than 850 LEAP and CFM56 engines, 250 CF34 engines, close to 100 GE90-115B engines and almost 50 GEnx engines.

This was a strong airshow for freighters and for widebody orders, it was a strong show for future tech, it remains to be seen if it was a strong show for “firm” orders.

Eleanor Steed
By Eleanor Steed July 20, 2018 09:24