Monday, July 25, 2016

The 2016 Farnborough International Air Show in Review

The 2016 installment of the Farnborough Air Show was a much tamer affair compared to the order bonanzas of 2014 at Farnborough and 2015 at the Paris Air Show. 607 order commitments and 135 options were placed by airlines and lessors at the 2016 Farnborough Air Show for a total of 742 aircraft. In 2015, there were 1,223 order commitments at the Paris Air Show.   

Airbus led all manufacturers with 405 order commitments and options with 208 of those firm orders. Airbus was buoyed by Air Asia's massive $12.6 billion order for 100 A321neo aircraft with options for 100 more. Boeing received 179 order commitments and options with 78 of those firm orders. COMAC received 90 order commitments, all for its ARJ21 regional aircraft. Embraer received 25 order commitments and options while Bombardier only received a total of 3 orders 

Airbus dominated Boeing in the narrow body section with 390 order commitments and options to Boeing's 150. Airbus received 375 order commitments and options for its A320neo family while Boeing received 116 orders for its 737MAX family of aircraft.  

In the wide body segment, Boeing received 29 orders and commitments to Airbus' 15 orders. Boeing was boosted by an order for 16 747-8F by Russian freight company Volga Dnepr, which was announced before the air show but was finalized at Farnborough. When the 747-8F order is excluded, Boeing received only 13 wide body orders to Airbus' 15.  

Other News From Farnborough 

Boeing plans to lengthen the 737MAX 7 to accommodate more seats from the current 126  to 138 seats in the new lengthened version. Boeing also said it is looking at lengthening the 180 seat 737MAX 9 as well.  

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It was a busy week for Qatar Airways' investment arm as the gulf carrier announced it will acquire a 10% stake in LATAM worth $613 million and a 49% stake in Italian airline Meridiana. 

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Sukhoi unveiled a sport jet version of its fledgling Superjet 100 aircraft at the Farnborough Air Show. The Sukhoi SportJet, which is designed to ferry around the world's best athletes and their teams, will feature seats that can monitor heart rate, hydration and oxygen levels, and an in-flight media system loaded with video analysis, motivational videos, and training videos. The SportJet  also features a recovery zone and physical therapy and training areas. The first SportJet is expected to be completed in 2018.  

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Airbus announced a major rate cut for its struggling A380 program. The production rate of the A380 will drop to only one plane a month in 2018, down 50% from the current rate 

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Total Order Commitments and Options 
Boeing 
Airline/Lessor
Aircraft Type
Quantity
Order Type
Xiamen Airlines
737 MAX 200
30
Order LoI/MoU
Donghai Airlines
737 MAX 8
25
Order LoI/MoU
Air Europa
737 MAX 8
20
Firm Order
Volga-Dnepr
747-8F
16
Firm Order
Undisclosed Chinese customer
737 MAX
15
Order LoI/MoU
Undisclosed Chinese customer
737 Next Gen
15
Order LoI/MoU
Standard Chartered
737-800
10
Firm Order
TUI Group
737 MAX 8
10
Firm Order
Kunming Airlines
737 MAX 7
10
Order LoI/MoU
EgyptAir
737-800
9
Firm Order
Air Lease Corp.
737 MAX 8
6
Firm Order
Ruili Airlines
787-9
6
Firm Order
Donghai Airlines
787-9
5
Order LoI/MoU
TUI Group
787-9
1 (+1 Option)
Firm Order

Airbus

Airline/Lessor
Aircraft Type
Quantity
Order Type
AirAsia
A321neo
100 (+100 options)
Firm Order
GoAir
A320neo
72
Order LoI/MoU
Synergy Aerospace
A320neo
62
Firm Order
Germania
A320neo
25 (+15 options)
Firm Order
Jetstar Pacific
A320ceo
10
Order LoI/MoU
Virgin Atlantic
A350-1000
8
Firm Order
Wow Air
A321ceo
4
Firm Order
Air Lease Corp.
A350-900
3
Firm Order
Arkia
A330-900neo
2
Firm Order
Aer Lingus
A330-300
2
Firm Order
Air Lease Corp.
A321ceo
1
Firm Order
Air Côte d'Ivoire
A320neo
1
Firm Order
Embraer 
Airline/Lessor
Aircraft Type
Quantity
Order Type
Arkia
E195-E2
6 (+4 options)
Order LoI/MoU
Kalstar
E195-E2
5 (+5 options)
Firm Order
Nordic Aviation Capital
E190-E2
4
Firm Order
Japan Air Lines
E190
1
Firm Order

COMAC 
Airline/Lessor
Aircraft Type
Quantity
Order Type
China Aircraft Leasing
ARJ21
60
Order LoI/MoU
AVIC Leasing
ARJ21
30
Order LoI/MoU

Mitsubishi 
Airline/Lessor
Aircraft Type
Quantity
Order Type
Rockton
MRJ90
10 (+10 options)
Order LoI/MoU

Bombardier 
Airline/Lessor
Aircraft Type
Quantity
Order Type
Porter Airlines
Q400
3
Firm Order

Source: FlightGlobal

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