Defies Industry Expectations
The Farnborough International Airshow 2016 recorded orders and options to the value of $123.9 billion defying industry expectations
Dark clouds, literally as well as metaphorically, were looming large. The United Kingdom had just decided to walk out of the European Union and the ‘Brexit’ referendum was weighing on everyone’s mind. While everyone was discussing the advantages and disadvantages of the move, there was a sudden downpour, and the Farnborough International Airshow had to close early on day one.
Was that a dampener? Is ‘Brexit’ going to be a stumbling block? No. It did not appear so, at least for now. The iconic Farnborough International Airshow ( from July 11 to 15, 2016) closed on a high note, despite all the fears. The organisers of the show confirmed that 2016 had recorded orders and options to the value of $123.9 billion defying industry expectations. Farnborough International’s internal order tracker recorded a total of 856 aircraft valued at $93.98 billion, 1,407 engines valued at $22.7 billion and a variety of other business deals totalling £7.2 billion. If that is not good news, nothing is.
However, for the UK Prime Minister, David Cameron, who inaugurated the airshow, it was his last major event before he stepped down as Prime Minister, a fall-out of ‘Brexit’. He along with Virgin Atlantic boss Richard Branson opened the event which included a fly-past by the F-35 Joint Strike Fighter flanked by the Red Arrows which came up with dazzling display after initial rumours that they would not be flying at the show. It was in a way making a statement that the aviation industry has the resolve to bounce back.
Commercial Director, Amanda Stainer, said: “It’s been a really successful show for our exhibitors. Our marketing suite has been busy and we have already taken a considerable about of re-bookings for the 2018 show. The Meet-the-Buyer programme has gone well with over 1,700 meetings taking place as has the military delegations and civil and commercial delegations programme which has seen representation from over 60 countries.”
Commercial aviation hogs the limelight
The Farnborough airshow is one other place (Paris being the other) where commercial aviation takes precedence over everything else, where aerospace behemoths are in their aggressive best. The continuing duel between the two major players – Airbus and Boeing – is now passé.
Boeing centennial
For the US aerospace giant – The Boeing Company – Farnborough was an ideal location to celebrate its centenary year. The company recorded multibilliondollar orders and commitments for services, defence platforms and commercial airplanes at a highly successful show. The Boeing Chairman President and CEO Dennis A. Muilenburg said, “As the birthplace of British aviation, there are few better backdrops to celebrate the accomplishments and wonders of the aerospace industry and mark our centennial than the Farnborough Airshow. Throughout the show, we demonstrated and discussed our innovative and cost effective products and services and the tremendous value they provide our commercial and defence customers.”
“On the commercial side of the business, we were pleased at the confidence our customers displayed in our portfolio of airplanes and services with significant orders and other announcements,” Muilenburg said. “Customers announced orders and commitments during the week for a total of 182 Boeing commercial airplanes, valued at $26.8 billion at list prices. Boeing has booked 321 net orders in 2016, as updated on July 14 on the Boeing Orders & Deliveries website. Customers also announced commercial services agreements valued at multiple billion dollars over the life of the contracts, including the largest commercial services order in Boeing history.”
Airbus domination continues
Airbus bagged $35 billion worth of business for a total 279 aircraft covering by single-aisle and wide-body aircraft families. The deals comprise firm orders for 197 aircraft worth $26.3 billion and commitments for 82 aircraft worth $8.7 billion. Notably, the larger A321neo model took a lion’s share of the single-aisle announcements- with firm selections from three airlines for 140 aircraft, reflecting the trend for airlines to upsize to larger single-aisle aircraft.
In the widebody segment Airbus won firm orders for 10 aircraft worth $3.4 billion comprising two A330-300s and eight A350-1000s. In addition to these new wide-body orders, the show also saw the launch order from DHL Express for the A330-300 passenger-to-freighter conversion programme.
John Leahy, Airbus’ Chief Operating Officer, Customers, said: “Our orders this week at Farnborough confirm a buoyant industry in which we have once again surpassed our competitor. In addition, airlines upsizing to the A321neo shows that this aircraft is the undisputed ‘middle-of-the-market’ champion.”
GoAir’s big orders
Indian low-cost airline GoAir has chosen Airbus for its further expansion plans by signing a memorandum of understanding (MoU) for 72 A320neo aircraft. GoAir, a Wadia Group company, announced its latest order following a similar agreement for 72 A320neo placed in 2011 bringing the total order book to 144 aircraft. The first two aircraft from this order were delivered in June.
“The new A320neo provide us the competitive edge to achieve our growth targets and help us strengthening our presence in the wider region. It also reaffirms GoAir’s commitment to deliver the most modern, comfortable and excellent air travel experience to all customers as well as to strengthen the sustained positive growth and business expansion of the company. The new aircraft will help us in unlocking new domestic routes while providing a springboard for continued international network expansion in the years to come.” said GoAir CEO Wolfgang Prock-Schauer.
GoAir is the first airline to use A320neo in Spaceflex configuration with 186 seats without compromising on the passenger leg room and comfort. This configuration will also enable better service and availability during peak season for the travellers.
AirAsia makes headlines again
AirAsia signed a firm order with Airbus for the purchase of 100 A321neo aircraft. The contract was announced at the Farnborough Airshow today by AirAsia Group Chief Executive Officer Tony Fernandes and Airbus President and CEO Fabrice Brégier. The contract marks the first order placed by AirAsia for the largest model in the bestselling A320 family. Seating up to 240 passengers in a single class layout, the A321neo will enable the airline to increase capacity while benefiting from the lowest operating costs in the single-aisle category. The announcement sees the total number of A320 family ordered by AirAsia rise to 575, reaffirming the carrier’s position as the largest airline customer for the Airbus single-aisle product line.
Regional players in the wings, ATR forecasts 2,800 aircraft
Though Embraer, Bombardier and ATR did not have record-breaking orders at the show, they made their presence felt by listing out their respective competitive edge. ATR unveiled its 20-year market forecast that pegs the number at 2,800 new turboprop aircraft. ATR predicts that 1,000 turboprops will be replacing older aircraft and the rest will be fleet growth, coming from countries such as China, India, Iran, Japan and the US.
Embraer has modest sales
Brazilian aerospace major, Embraer did not have any attentionseeking orders. The sales have been modest, though overall its orders for both its current and next-generation family of E-Jets is encouraging. There were two new customers in the E2 order book with the addition of airlines in Israel and Indonesia. Both customers currently operate E-Jets and are growing their fleet with E2s.
Indonesia’s Kalstar signed firm orders for up to 10 E190-E2s, including five purchase rights. The order is valued at $582 million. The transaction is being included in Embraer’s 2016 third quarter backlog and deliveries are to begin in the first quarter of 2020. The new order brings the E-Jets E2 backlog to 272 firm orders plus 388 letters of intent (LoIs), options and purchase rights, a total of 660 commitments from airlines and leasing companies. Aircraft lessor Nordic Aviation Capital is picking up four current generation E190s, besides it signed a letter of intent for 10 E-195 E2s with Arkia Israeli Airlines. Continuing the trend of low sales, another regional airframer, Bombardier announced an insignificant purchase of three Q400 turboprop aircraft by Porter Airlines of Toronto, valued at $93 million.
Mitsubishi MRJ development on track
The Nagoya-based aircraft manufacturer announced an order for 10 MRJ90s (with 10 purchase options) from Rockton Aviation, an aircraft lessor based in Stockholm, Sweden. The order marks the MRJ’s first from a European customer and second from a lessor. Mitsubishi Aircraft Corporation CEO Hiromichi Morimoto said that the MRJ is on track for certification and entry-into-service (EIS) in 2018.
Turkish Regional Jet in the making
The Turkish Regional Jet (TRJ328), a new 30-seat regional jet based on the Dornier 328 platform, also had its coming out party at Farnborough, announcing a series of suppliers for various components and a new order for 10 aircraft from the Istanbul Chamber of Commerce (ITO). For the TRP328, the turboprop variant of the family, TRJet (the Ankara-based manufacturer of both types) signed an agreement with Pratt & Whitney to use a to be developed PW127 turboprop engine on the new turboprop, and announced five orders from Sentinel Aerospace Group of Singapore.
Textron lines up array of solutions
For the first time ever, Textron Inc had six of its businesses (Textron Aviation; Textron AirLand; Textron Systems: Bell Helicopter; TRU Simulation+Training; and Textron Airborne solutions) at the show. The full line-up featured advanced rotorcraft, tactical turboprop, jet aircraft, precision weapons, and unmanned aircraft. Beechcraft Defense Company highlighted their special mission and defence capabilities, including a static display of the fusionequipped Beechcraft King Air 350ER, Cessna Grand Caravan EX and the Beechcraft T-6C.
Gulfstream G500 European debut
Gulfstream Aerospace Corp’s all-new G500 made its European debut at Farnborgough, travelling across the Atlantic to participate in the static display. The G500 flew non-stop from Savannah to Farnborough Airport in 6 hours and 55 minutes, accomplishing the 3,732-nm (6,912-km) flight at an average speed of Mach 0.90 and altitude of 45,000 feet (13,716 metres). “Since the first flight of the G500 in May 2015, we have been steadily expanding the test fleet and progressing toward the aircraft’s certification in 2017,” said Mark Burns, President, Gulfstream. The G500 is slated to receive type certification in 2017 and deliveries expected in 2018.
GE and its JVs get over $25 billion
GE Aviation and its joint venture companies, including CFM International, a 50/50 joint company between GE and Snecma (Safran), announced more than $25 billion in orders and commitments at show. The orders and commitments included more than 800 GE and CFM engines as well as TrueChoice suite of engine maintenance offerings. GE Aviation also finalised agreements with IHI Corporation, Safran Aircraft Engines and Safran CFM International celebrated the production of the 30,000th CFM56 engine. CFM International’s industry-leading LEAP and CFM56 product lines remain the engines of choice for single-aisle aircraft, with the company announcing orders, commitments, and long-term service agreements for a total of 565 engines with a value of $8.2 billion (including undisclosed customers) at show.
“Our customers and their operations are always at the forefront of everything we do, from the technology we incorporate into our engines to the way we support the fleet,” said Jean-Paul Ebanga, President and CEO of CFM International.
Rolls-Royce Trent 1000 TEN certified by EASA
The Rolls-Royce Trent 1000 TEN (thrust, efficiency and new technology) engine, which will power the Boeing 787 Dreamliner, has received official certification from the European Aviation Safety Agency (EASA). The certificate was officially presented by Trevor Wood, Certification Director, EASA, to Gareth Jones, Trent 1000 Chief Engineer, Civil Aerospace, Rolls-Royce at Farnborough.
Irrespective of whether it was civil or military, this edition of Farnborough was good for the industry, though not spectacular, considering the prevailing economic and security situation in the world, more so in Europe.
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