The Paris Air Show kicks off with a historic aircraft request

PARIS (Reuters) – Airbus (AIR.PA) announced a record 500 aircraft deal with Indian airline IndiGo (INGL.NS) on the first day of the Paris Air Show on Monday, as strong demand for aircraft and air defenses compete. Attention to supply chain problems in the industry.

The multi-billion dollar deal for single-aisle aircraft – the largest ever by number of aircraft – confirmed a Reuters report earlier this month, surpassing Air India’s temporary purchase of 470 Airbus and Boeing (BA.N) aircraft earlier. from this year.

The world’s largest air show, which alternates with Farnborough in Britain, is taking place at Le Bourget for the first time in four years after the 2021 edition fell victim to the pandemic.

French President Emmanuel Macron traveled to the crowded space bazaar by helicopter and watched a fly-by of Airbus’ latest development, the A321XLR, and air power including France’s Rafale fighter.

On the civilian side, aircraft makers have arrived with rising demand expectations as airlines scramble to be able to meet demand and help reach industry goals of net zero emissions by 2050.

But they also face a challenge meeting this demand as suppliers struggle with rising costs, spare parts shortages and a dearth of skilled labor in the wake of the pandemic.

Industry executives say as many as 2,000 orders are up for grabs worldwide in the nascent commercial jet market, on top of those already tentatively announced, as airlines try to fill the void left by a sharp drop in activity in the crisis. COVID.

But they said only a portion of these potential new deals will be ready in time for this week’s air show, which could see a mix of new and repeat announcements.

“It’s only when these show up in the year-end backlog that we have any idea of ​​the strength of the market and the quality of the orders,” said Sach Tosa, an analyst at Agency Partners.

Ukrainian arms talks

The IndiGo deal highlights the growing importance of India, the world’s fastest-growing aviation market, which serves the largest population, for the planemakers.

Peter Elbers, CEO of IndiGo, told a news conference.

In another key market, Airbus said Saudi Arabia’s low-cost airline Flynas has confirmed an order for 30 of its narrow-body A320neo jets, confirming a Bloomberg report.

The airshow takes place in the shadow of the conflict in Ukraine, with no Russian presence in the chalets and galleries unlike the last event four years ago.

A Ukrainian minister told Reuters that Kiev is in talks with Western arms manufacturers to boost production of weapons, including drones, and may sign contracts in the coming months.

Belgium has said it will apply to join as observer of the potential successor to the multinational Rafale and Eurofighter, the Franco-German-Spanish fighter project FCAS, despite differences between the industrial partners over whether to expand.

France’s Thales (TCFP.PA) also announced a contract with Indonesia for the purchase of 13 long-range air surveillance radars.

Looking at the rest of the supply Air India may wind down its latest huge order, split between Airbus and Boeing Irish lesser Avulon finalizes a deal with Boeing seeing a relatively quiet showing after a series of recent orders.

Airbus is seen closing in on a potentially big deal with Mexico’s Viva Aerobus, but by Monday some sources predicted volume could be closer to 60 aircraft than the three figures first reported, with no guarantee of an outcome this week.

And with increased bargaining power available to them due to supply shortages, airline executives say the makers are getting tougher on price and more cautious than they have been with previous bikes.

Meanwhile, engine makers are placing their bets on fuel-saving technology that will influence how aircraft evolve in the next decade.

Additional reporting by Tim Hever, Joanna Plosinska, Alison Lambert and Valerie Encina; Additional reporting by Aditi Shah, Julia Payne, Nandan Mandayam; Editing by Mark Potter and Jonathan Otis

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