Boeing kicks off airshow with $12 billion in deals in first day
Boeing Co. dominated the first day of dealmaking at the Farnborough International Airshow, sealing an estimated $12.6 billion in aircraft sales at the aviation industry’s biggest event of the year.
As expected, widebody jets were at the center of the action at the venue just outside of London, after airlines coming out of Covid-19 disruptions loaded up on narrowbody aircraft last year. Korean Air Lines Co. led the slate for Boeing on Monday with an order for 20 777-9 and 20 787-10 Dreamliner jets, plus options for 10 more of the largest 787 variant.
Boeing, whose outgoing Chief Executive Officer Dave Calhoun isn’t in attendance, has toned down its presence at Farnborough, a marquee event that alternates with Paris each year. The company is focused on addressing manufacturing quality issues that have kept it in crisis for months.
Yet the US planemaker came away with a clutch of new business that underscored its longtime edge over Airbus SE on the biggest and most expensive aircraft. Altogether, Boeing’s Monday haul totaled 78 planes, including 56 firm orders and 22 options, while its European rival signed a deal for 20 twin-aisle A330s.
Boeing’s firm orders alone have a real-world value of about $9.39 billion, based on market value estimates provided by Ishka, an aviation consultancy that tracks aircraft sales. Airlines typically receive large discounts to Boeing and Airbus list prices.
In addition to the Korean Air deal, Boeing firmed up a widebody order with Japan Airlines Co. that was announced in March, adding options for up to 10 787s, and signed smaller agreements with Luxembourg’s Luxair and Florida cargo firm National Airlines.
VietJet Aviation provided Airbus with its only firm contract of the day, ordering 20 of its A330neo aircraft with a list value of $7.4 billion. The world’s biggest planemaker also reached a memorandum of understanding with Drukair – Royal Bhutan Airlines covering five A320-series narrowbodies, including two of its long-distance A321XLR.
Combined, the two Airbus deals have an estimated market value of about $2.56 billion, based on Ishka estimates.
Boeing has sharpened its focus on improving manufacturing quality in the wake of a near-catastrophic accident in January. That’s forced the company to slow down output, leading to delivery delays with many carriers.
On Monday, Dubai discount specialist FlyDubai said it won’t receive any additional aircraft from the US manufacturer this year, forcing the company to recalibrate its fleet and route plans. Other carriers, including Ryanair Holdings Plc, have said they’re short on aircraft from Boeing, forcing them to also drop some routes.