Large orders for Boeing at Farnborough Airshow
Boeing, the US aircraft manufacturer, secured large orders worth billions at the Farnborough Airshow. Korean Air placed an order for 40 planes with Boeing's rival, Airbus. The companies signed a deal for 20 each of the 777X and 787-10 models, with an option for an additional ten 787-10s. The deal is estimated to be worth around seven billion dollars in the industry.
In addition, Japan Airlines ordered ten 787-9 planes and an option for ten more. The deal is valued at 1.47 billion dollars. These are the first major orders at the world's largest aviation fair, which runs until Friday. For Korean Air, it's a return to its long-term main supplier Boeing, after the company bought 33 long-haul planes of the A350 type from Boeing's rival Airbus in March.
Experts believe that fewer large orders will be signed at this year's industry show compared to the long-term average. This is partly due to the slowdown in growth in the aviation market following the pandemic. In addition, Boeing and Airbus are struggling to ramp up production due to ongoing issues with suppliers.
The budget airline flydubai announced that its expansion plans would be hindered by delays from Boeing. Ryanair CEO Michael O'Leary expressed concerns about the promised Boeing deliveries for next year. However, there are currently signs of improvement. Boeing has reduced production of its 737 MAX due to safety concerns, in an effort to improve quality.
Before the world's most important aviation fair, Stephanie Pope, responsible for Boeing's passenger jet business, stated that the production of the 737 MAX is stabilizing. The company is addressing the issues of safety and corporate culture. The latest turbulence was triggered by an incident in January, where a section of a 737 MAX's fuselage broke off just a few minutes after takeoff.
At the Farnborough Airshow, Boeing also secured orders for seven 737 MAX planes from an undisclosed customer, worth hundreds of millions of dollars. The total orders Boeing received at the airshow exceeded six billion dollars. Korean Air's switch back to Boeing for their orders marks a significant turn of events in their long-term business relationship. The seven billion dollar deal with Boeing is the largest order at this year's airshow.
