Boeing v Airbus

World’s biggest plane makers fight for £30bn deals at Farnborough Airshow

Boeing powered ahead of european rival Airbus as the plane makers went head-tohead on the opening day of the Farnborough Airshow.

The American aerospace giant announced new or confirmed orders worth around £18bn compared to estimated Airbus orders of about £12.2bn. Farnborough bosses said 311 planes had been ordered on the first day of the show, worth about £7bn to the UK.

Deals during the week are expected to match or exceed 2016’s £90bn.

The airshow, which is held every other year, is one of the world’s biggest aviation trade shows. it draws in dignitaries and investors from across the globe, as well as showcasing new planes and helicopters.

This year’s event was the first in a long time where Airbus was without its legendary sales chief John Leahy. The arch dealmaker, who sold more than $1trillion worth of planes during his two decades with the firm, retired last year.

His replacement, eric Schulz, 54, from Rolls-Royce, yesterday said he was confident the market for wide-body jets would pick up.

in recent months these types of passenger plane have fallen out of favour, with airlines opting for longer, narrow-body planes instead.

He said: ‘We had a massive wave four to five years ago with a lot of orders. i think the market had to pause a little bit until we could deliver consistently and get to ramp up and rate. i think this is behind us now.’

Boeing’s mega-deals yesterday included the sale of 15 of its 777 Freighter cargo planes to DHL for around £3.6bn at list prices.

it also clinched the sale of about 15 more Max 8 planes to Brazilian airline goL for a possible £1bn, and five 777 freighters to Qatar Airways worth a possible £1.3bn.

Airbus’s deals included 25 of its A320neo family aircraft to Kuwait’s Wataniya Airways worth a possible £2bn, and ten of its A350 XWBs to Sichuan Airlines worth a possible £2.3bn.

Airbus and Boeing have a grip on the large jet market and have boomed in recent years thanks to growth in emerging markets and airlines upgrading their fleets. Around £7bn of Airbus’s orders yesterday were from Asian carriers that are meeting rising demand for air travel, including a roughly £4.5bn deal with Starlux Airlines, a Taiwanese start-up.

However, both companies have struggled with much lower than expected demand for their latest wide-body jets.

Airbus’s A380, the world’s largest passenger plane, has been something of a flop, with production scaled down after orders slowed.

The show yesterday also saw Defence Secretary gavin Williamson announce plans for a UK fighter jet, and funding announced for the first UK satellite launches.

Last month, Airbus, which employs about 10,000 in the UK, threatened to withdraw if the country crashes out of the european Union without a trade deal. Boeing, which employs about 2,000 here, said yesterday it was committed to UK investment.

Reports have emerged that Airbus is also working on a £17.3bn deal to sell planes to Air Asia group.