Airbus SE is coming off a resounding first day of the Paris Air Show, shutting Boeing Co. out in aircraft orders by a score of $13 billion to nothing. The European planemaker also unveiled a long-range single-aisle variant, the A321XLR.
The order race will continue on Day 2 as Boeing looks to get in on the action. Chief Executive Officer Dennis Muilenburg is also using the trade fair to sound a note of “humility,’’ as the U.S. manufacturer struggles to get its 737 Max back in the air after two deadly crashes and a grounding that’s now in its fourth month.
- Airbus is said to pad its total with a $6.8 billion order from Cebu Air
- The CEO of engine-maker Safran says more Max delays will require a production cut
Philippines Order (9:46 a.m.)
The country’s largest carrier, Cebu Air Inc., has ordered 31 aircraft from Airbus including 10 long-range jets, according to a person with knowledge of the matter. The deal for 16 A330neo wide-bodies and 15 A320neo-family aircraft includes 10 of the European planemaker’s new A321XLR model, unveiled Monday in Paris. The jets, scheduled for delivery from 2021 to 2026, would be worth $6.8 billion based on the list price, the person said.
Prospects for Takeoff
France’s Safran SA, which supplies engines for the Boeing 737 Max through its CFM International venture with General Electric Co., said it expects to see the grounded jet flying again this summer. But CEO Philippe Petitcolin warned that a delay beyond August would force a further slowdown in production beyond the cut of 10 planes a month—to 42—that’s already been forced on the company. “There’d be another reduction, I don’t think we’d have any other choice,” he said.
American Air Mulls Up to 50 of XLR Jets
American Airlines Group Inc. is considering an order for as many as 50 of Airbus SE’s new long-range A321XLR jets, a person familiar with the discussions said.
The world’s largest carrier sees the plane, which would have the longest range of Airbus’s single-aisle offerings, as a potential replacement for its aging fleet of 34 Boeing Co. 757-200 jets, Bloomberg reported earlier this month. There’s no guarantee a deal will be reached.
Mitsubishi Edges Toward Bombardier
A takeover by Mitsubishi Heavy Industries Ltd. of Bombardier Inc.’s CRJ regional jet program has merit, according to an executive at the Japanese company’s aviation unit.
“It would make a lot of sense in the context of developing and delivering global aircraft,” Steve Haro, a vice president at Mitsubishi Aircraft Corp. The comment raised the possibility that a deal could be reached soon.
Qatar Air Nears New Investment
Qatar Airways QCSC will announce a stake in a sixth overseas carrier in the coming months, Chief Executive Officer Akbar Al Baker said, as the Persian Gulf operator turns to outside investments to boost revenue and cash amid a Saudi-led embargo restricting its flights.
“We are buying stakes in successful airlines and we will continue to do so,” he said, without naming a target company. “Soon you will hear about another investment.”