Boeing Dreamliner Crash, military escalation darkens the Paris air show

First Kelly Ortberg Parisian air show as Boiling The CEO was confined to optimistic.

Under his leadership that started in AugustThe company has succeeded in increasing the production With its bestsellers 737 Max Jets, increasing the delivery of new planes and indicates that it turns the angle from a series Crises of production and security and years of lost land for Airbus competition. Stock this year increased by more than 13%by overcoming S&P 500.

But after Air India’s flight crashed On Thursday, marking the first deadly disaster Boeing DreamlinerOrtberg canceled plans to go to a large -scale air show that starts on Sunday.

Trading event is a big draw for this industry and is held every second year, alternating with Farnborough Airlines in the UK Boeing, Airbus and other aerospace giants conducting champagne parts, conducting parties that are signing deals with leaders. Extreme maneuvers for viewers.

“When our industry is preparing to start the Paris air shows, Stephanie and I canceled the plans for visiting so we can be with our team, and focus on our clients and investigation,” Ortberg said at the end of Thursday, citing Boeing CEO Boeing.

All but one of the 242 people aboard Flight Air India 171 were killed when more than 11-year-old Boeing 787-8 Dreamliner, who headed for London a day that crashed into the student hall after taking off from Ahmedabad in Western India. A The only survival was a British national in India in the seat 11a.

The cause of the disaster is unknown and it will take several weeks or months to determine. Questions focus on how the plane has lost its height so fast and evenly, looking to slide into the Fireball disaster. The voice of the cabin and the data records known as “black boxes” will provide key information.

“It is important that we do not reflect on the accident and allow the investigators to do our job,” Ortberg wrote.

Motor manufacturer of the plane, GE AEROSPACEHe said he will postpone the investor day scheduled for Tuesday.

The accident is not the only external factor that changes the collection in Paris.

Shortly before the beginning of the Paris Air Show began, launched Israel During the night missile strikes to Iran. A few hours later, Iran launched drones to Israeli territory. Airlines canceled flightsWith airplanes in the air, which distract or return to their directions, while hundreds of others tolerated airspace.

Escalantic tensions will make military budgets and spend even more attention to air shows, but they also raise concern about how conflicts and geopolitical tensions can affect the demand for commercial air travel.

Despite the accident and other external problems, Boeing, Airbus and Embraer It is expected to be fixed in hundreds of orders on the plane. The time of waiting for the popular new models of aircraft, which are already stretched in the next decade, is still strong.

On Saturday, Boeing’s forecast that over the next two decades of the world will need 43,600 commercial aircraft and the growth of new markets. He believes that in these markets in 2044 there will be more than half the world fleet, which is compared to 40% last year.

Some of the order signatures may come from previously undisclosed customers, although there are many new orders on the line, aviation analysts say.

Permanent problems, such as absence Trained workersdelayed the supply of new planes while again again causing concern more expensive planes and components.

Prices also arose. The new Airbus A321neo was going for $ 65 million as of the end of April, which is compared to $ 58 million in early 2023, while the new Boeing 737 MAX was about $ 55.5 million in April, compared to $ 50.25 million in the early 2023 year Advisory firm.

Because the planes are still missing, rental rates also go to old airplanes that prefer not to make multi-million-dollar planes ahead, or may be required for shorter periods. The 12-year-old Boeing 737 costs $ 241,000 a month for rent as of the end of April, which is 42% more than two years earlier, and Airbus A320 was $ 239,000 a month, 50% income, according to IBA Insight, another aviation firm.

In the UK, predicted IBA manufacturers can see 700 to 800 commercial planes during the Paris show, which includes firms, options and more free commitments such as letters of purchase and memoranda intentions.

Customers can include Ethiopian airlines and a Polish carrier, as well as Vietnam Airlines, Airasia, Royal Air Maroc, Etihad and Saudi Carrier Riyadh, Ishka said.

“A big deal from China, if, is inevitable, replacing, if not the causes of growth,” Ishko said in the note last week.

Air India, which Ishka had previously entered as a potential client, was no longer expected to buy new planes that carried out the tragedy last week.

The customers of the aircraft are getting bigger as international trips continue to bring money.

“It used to be orders for one passage,” said Richard Aboula, director of Aerospace Consulting Aerodynamic Advisory. Now “all booking these orders Monster Twin-Aisle for international movement.”

He said large international airlines such as Turkish Airlines, Gulf Carriers and others have expanded in recent years, competing for more global travelers, “cutting pizza into smaller works.”

As orders are placed over the years in advance, Aboulaf said he did not expect much influence on the demand from the catastrophe, although some may be restrained during the show.

“It’s a terrible tragedy. It doesn’t make life easier,” he said. “I just don’t think given what we know now, it is relevant to the design or assembly of the plane. That’s not like that.”