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Time of India
a day ago
- Business
- Time of India
Paris Air Show 2025 turns in Airbus's favour with multi-billion dollar deals as Boeing reels from 787 Dreamliner crash fallout
The Paris Air Show , one of the biggest global events for the aerospace industry, is underway, but 2025's atmosphere feels different. While Airbus celebrated $21 billion worth of aircraft orders, rival Boeing maintained a quiet presence following the tragic Air India Flight 171 crash, which killed over 270 people last week. Airbus Takes the Lead With Major Orders European aircraft maker Airbus signed multiple new deals at the show, including: 10 long-haul jets ordered by Starlux Airlines from Taiwan 2 A350 freighters ordered by MNG Airlines 6 A350-900 jets revealed to be ordered by EgyptAir 40 A220 aircraft for LOT Polish Airlines Up to 150 single-aisle jets in a deal with VietJet Big wins in Saudi Arabia, including orders from Riyadh Air and AviLease In total, Airbus secured 148 firm orders worth around $14.2 billion, and another 102 provisional orders estimated at $6.7 billion, according to Cirium Ascend. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa For Sale in Dubai Might Surprise You Villas in Dubai | Search ads Learn More Undo Airbus's planemaking CEO, Christian Scherer, opened each announcement with condolences for the victims of the India crash. 'It is an air show with a regrettable tragedy that has affected all of us,' he told Reuters. Boeing Holds Back Amid Grief and Investigation In contrast, Boeing chose not to announce any major orders. The American company pulled back from its usual air show presence to focus on the investigation into the Air India crash. Live Events Top executives, including CEO Kelly Ortberg, cancelled their attendance, with a statement saying they needed to 'be with our team and focus on our customer and the investigation.' At Boeing's booth, visitors noticed bouquets of flowers and a framed message that read: 'Honouring those affected by Air India Flight 171.' Boeing's Turbo Sjogren said the tragedy had 'affected all of our employees,' describing the show's tone as 'very different' for the company. Talks and Missed Deals There had been rumours of a possible AirAsia mega deal at the show, with CEO Tony Fernandes saying discussions are ongoing to buy up to 70 A321XLRs and 100 A220s or Embraer E2 regional jets. However, the deal is likely to be finalised later, after AirAsia completes its financial restructuring. Meanwhile, Embraer confirmed an order for 60 E175 jets from SkyWest Airlines, with rights to buy 50 more. Supply Chain Issues Easing Despite high demand, aircraft makers have been facing supply chain issues, especially with engine deliveries. Airbus said it has seen 40% fewer disruptions in early 2025 compared to the previous year. Inputs from agencies
Straits Times
2 days ago
- Business
- Straits Times
Boeing keeps low profile at Paris Air Show as Airbus hits $27 billion orders
An Airbus A350-1000 passenger aircraft performs during an exhibition flight demonstration as the Paris Air Show on June 18. PHOTO: AFP PARIS – Every other year, thousands of visitors flock to a Paris suburb for the Paris Air Show, one of the aerospace industry's biggest events. The atmosphere is typically celebratory, but the recent deadly crash of an Air India flight cast a shadow over the show this week. The contrasting moods were apparent in the rivalry between two of the show's most prominent aircraft manufacturers: Airbus and Boeing. Airbus said it had withheld some announcements, but still secured US$21 billion (S$27 billion) of orders for new commercial jets, while rival Boeing opted not to announce new sales following last week's Air India 787 crash. The cause of the crash, in which at least 270 people died in the plane and on the ground, has yet to be determined. But it happened at a delicate moment for Boeing, which had appeared to be moving past a series of setbacks in recent years. The company reported nearly 350 orders in May, some of which were part of a trade deal between the United States and Britain. That made May Boeing's best month for sales in a year and a half. Boeing also reached a crucial production target in May for its most popular plane, the 737 Max. Boeing's chief executive, Kelly Ortberg, and the head of its commercial plane unit, Stephanie Pope, were scheduled to attend the air show, but cancelled their plans after the Air India crash. The sober atmosphere for Boeing was a contrast to Airbus, which boasted major orders for its most popular jets, including 40 A220 single-aisle jets for LOT Polish Airlines and a deal with VietJet for up to 150 single-aisle jets. Airbus also scored big wins in Saudi Arabia, which wants to become an international air travel hub: Riyadh Air ordered 25 A350 wide-body aircraft, while AviLease, a Saudi jet leasing company, ordered 40 commercial and cargo jets. Still, Airbus said it had chosen to hold back some announcements. 'The cold shower we all had was the Air India accident, so we've actually scaled back,' said Christian Scherer, the CEO of Airbus' commercial aircraft business. He added that although aerospace was extremely competitive, Airbus never used safety to its advantage: 'You don't go there.' Boeing has been in catch-up mode the past few years as its rival has pulled ahead in orders. Even if it does see any slowdown in business because of the crash, it will probably be temporary if the investigation clears the plane itself, said Richard Aboulafia, a managing director at AeroDynamic Advisory, a consulting firm. 'If there's any pullback from orders in the aftermath of this tragedy, it's purely for optics,' he said. Airlines remain confident in Boeing's planes and have only one major alternative in Airbus. It could take months to determine the cause of the crash. The plane's flight data recorder and cockpit voice recorder, both of which have been recovered, should yield a wealth of information, experts said. It was the first fatal crash involving a Dreamliner, a popular choice for long-distance routes because of its range, fuel efficiency and other factors. More than 1,100 are in service today, according to Cirium, an aviation data firm. India's aviation authority, the Directorate General of Civil Aviation, said on June 17 that a review of Air India's remaining Dreamliner planes 'did not reveal any major safety concerns.' NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
The National
2 days ago
- Business
- The National
Passengers 'should be confident' about safety of Boeing planes
A senior Boeing executive has reassured passengers about the safety and quality of the plane maker's aircraft, but declined to comment directly on the Air India crash as the investigation continues. Darren Hulst, Boeing's vice president of marketing, was speaking during a press briefing at the Paris Air Show. 'With regards to the Air India tragedy, our hearts, our thoughts and our prayers are with all the families that have been impacted by this, as well as our partner and long-term customer Air India,' he said. Mr Hulst insisted customers and passengers 'should be confident' about the safety of Boeing aircraft. 'Longer term, we all know how important safety and quality are to our business,' he added. Boeing has scaled back its presence at the biennial show in Le Bourget on the outskirts of the French capital following the crash involving one of its 787 wide-body jets operated by Air India last week. Chief executive Kelly Ortberg and head of commercial planes unit Stephanie Pope both withdrew from the event and the US manufacturer has yet to announce any new orders at the expo. The Air India crash is the another setback for Boeing, which had been in the process of rebuilding trust after a series of safety and production quality lapses. Asked whether the accident has dented customer confidence and if it could affect demand for the 787 Dreamliner, Mr Hulst suggested it is too early in the investigation to come to any conclusions. 'Demonstrating and proving that credibility over time is not just something that we do overnight,' he said. Re-establishing that credibility is part of a long-term commitment to re-instil safety and quality values throughout the business while continuing to communicate with customers, Mr Hulst explained. 'We will continue to support our customers,,' he added. 'We're there on the ground today with our partners at Air India to support them and that is not going to change. 'In the longer term, those values continue to drive how we build, how we design and how we support our fleets. I have full confidence in that continuing.' Mr Hulst was speaking as Boeing released its 20-year commercial market forecast, which shows that there is global demand for 43,600 new passenger and freighter jets by 2044. Meanwhile, India's aviation safety regulator said on Tuesday that it found no major safety issues with Air India's fleet of Boeing 787 jets during its inspections, following the crash last week that killed all but one of the 242 people on board flight AI 171. The Directorate General of Civil Aviation completed one-time checks on 24 of the 33 Boeing 787 Dreamliner aircraft operated by the carrier, Bloomberg reported, citing a statement from the regulator. Air India is operating 27 of the jets, though six are currently grounded for maintenance, the DGCA said. While Boeing's presence at the Paris Air Show was muted, European rival Airbus on Tuesday announced a deal with budget airline VietJet for up to 150 single-aisle aircraft. The Vietnamese airline has ordered 100 of the A321 Neo aircraft, with the potential to add another 50 in the future, Airbus said.
Mint
2 days ago
- Business
- Mint
Boeing under scrutiny again after Air India crash: How does it fare against Airbus?
The annual Paris Air Show has historically been a platform for Airbus and Boeing—the duopoly that constitutes the global commercial aircraft industry—to announce customer wins. The Air India Boeing 787 crash last week has stripped the bluster from this year's show, which runs through this week. Boeing CEO Kelly Ortberg cancelled his visit, and GE Aerospace, whose engines were fitted on the fatal 787 Dreamliner, called off an investor briefing. Although the reason for the Air India plane crash is unknown, it presents a poor image for Boeing. This incident is the latest in a series of setbacks that have defined much of the past decade for the under-fire American company. Till 2018, Boeing was riding the growth in civil aviation and shaping advances in fuel efficiency and distance travelled, epitomised by the launch of its 737 Max in 2016. However, two accidents in 2018 and 2019 led to the 737 Max fleet being grounded globally from March 2019 to November 2020. Meanwhile, Airbus, its European rival, kept chipping away under the radar, creating a contrast in shareholder returns. Airbus barely made any news; Boeing became the news. The grounding of 737 Max had a cascading effect on Boeing's operations. Even as the pandemic stalled business, Boeing plodded through inquiries around safety with regulators and legislators, large layoffs, worker strikes and leadership change. Deliveries suffered. Between 2019 and 2024, it delivered about half the planes compared to Airbus. In the last four financial years, while Airbus has earned a net profit, Boeing has reported losses. Also Read: How the crash impacts Air India, insurers and Boeing Perceptions of safety Accidents are one issue for Boeing, even though, statistically, air travel remains a low-risk mode of transport. According to IATA, a global aviation grouping, there were 146.4 million flights in the five years from 2019 to 2023. This period saw 1,177 accidents, as per the Aviation Safety Network, or a ratio of 0.0008%. Further, about 17% of these accident-hit flights registered a fatality. Put another way, on average, an accident happened once in about 124,000 flights and a death once in about 743,000 flights. Currently, both Airbus and Boeing roughly have an equal number of aircraft in operation—14,294 for Airbus as of 31 May and 'more than 14,000" for Boeing. Yet, between 2015 and 2025, Boeing planes have registered more accidents than Airbus (467 versus 246), and deaths (1,458 versus 564). Waiting period The Boeing accidents have taken a toll on the company's operations, as they pointed to structural flaws in the make of its 737 Max. Thus, in 2024, Boeing closed with revenues of about $66.5 billion, which was an increase of 7% over its 2021 revenues. Airbus, by comparison, went from revenues of about 52 billion euros in 2021 to 69 billion euros in 2024, an increase of about 33%. The problem for Boeing is deliveries, not orders, where it ran ahead of Airbus in the first half of the past decade and then mostly matched it in the second half. The commercial aircraft industry is a duopoly, and is capital- and tech-intensive in nature. The airline business is such that orders are placed in bulk, but mostly delivered one plane at a time. Thus, both manufacturers run a waiting period in their deliveries and have healthy order books. Also Read: DGCA orders Air India to conduct immediate checks of all Boeing 787-8/9 aircraft Capacity constraints Among the Indian airlines, Air India and Akasa Air are currently both facing the prospect where their aircraft supplier (Boeing) is unable to keep up with their appetite to fly. To some extent, that is also the case with IndiGo, which has ridden almost wholly on Airbus to become India's largest airline; the 9 Boeing aircraft currently in its fleet are all on lease. In India, thanks to IndiGo, Airbus outnumbers Boeing by roughly a factor of three. The industry's duopolistic nature also means a manufacturer-specific issue can have an outsized effect on operations. Boeing was picking up speed in 2025, matching Airbus in deliveries (220 versus 243). But it's again running into headwinds. First, there were the new Trump tariffs on exports, which hiked the cost of planes for Chinese airlines, and deferred deliveries. Now, it's the Air India crash. is a database and search engine for public data
Yahoo
3 days ago
- Business
- Yahoo
Boeing Plans No Further Changes to Global Services After Revamp
(Bloomberg) -- Boeing Co. has completed restructuring its Global Services business and isn't planning to make deeper cuts once it divests its Jeppesen unit later this year, the division's chief executive officer said. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown The planemaker isn't looking to auction off other businesses at the division, unit CEO Chris Raymond told reporters Tuesday at the Paris Air Show. The Jeppesen sale was initiated by Boeing CEO Kelly Ortberg shortly after he joined last year, as he faced a strike that had rapidly depleted the US planemaker's cash. Since then, the company has raised $24 billion in cash and begun the painstaking process of rebuilding its troubled manufacturing operations. Boeing also has no plans to fold the services unit, its only steady money-maker this decade, into the company's larger commercial airplane and defense operations, Raymond said. Analysts had widely speculated that Boeing Global Services might be dissolved to cut down on overhead, and that its disparate array of offerings, from spare-parts distribution to digital analytics and pilot training, might be pruned and sold after Ortberg unveiled plans to shrink Boeing last year. But the planemaker appears to be pulling out of its financial tailspin, as the tempo and quality of work in its factories improves. Boeing also got a larger-than-expected windfall from Jeppesen, which provides navigation and flight-planning products. It is being sold to private equity firm Thoma Bravo for $10.5 billion in a deal slated to close late this year. While Boeing would have preferred to keep the profitable business, the move was necessary to provide a financial cushion at a time when Boeing needed it. 'I think we've got the portfolio that we like,' Raymond said. 'Obviously, that was a valuable property in Jeppesen, and that was about the Boeing balance sheet, if you will.' For now, demand is booming for services tied to extending the commercial lives of jets, given a multi-year shortage of new aircraft. Boeing is seeing a surge of interest in refitting aircraft cabins with newer seats, and for the latest broadband service — particularly SpaceX's Starlink satellite system, Raymond said. The smallest of Boeing's three main businesses has been its steadiest performer in recent years: Global Services was the only division to post an operating profit in 2024, when the company posted an adjusted operating loss of $13.1 billion. The challenge for Raymond, who started in the role in January 2024, is to chart a new strategy without Jeppesen's profit cushion. Other digital offerings will continue to be a point of emphasis. But unlike in past eras, Boeing isn't pursuing growth only for growth's sake, Raymond said. The goal now? 'Disciplined, profitable growth,' he said. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software US Allies and Adversaries Are Dodging Trump's Tariff Threats ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
