Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Financiers keep tills ringing at UK air show

EconomyJul 15, 2014 10:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

By Tim Hepher and Victoria Bryan FARNBOROUGH England (Reuters) - The world's largest planemakers returned to business as usual on day two of the Farnborough Airshow, inking deals worth about $25 billion with the industry's top financiers on Tuesday after an ill-tempered clash over their latest aircraft designs.

The flurry of business deals involved names that mean little to most travelers but which keep the wheels turning of a $100 billion annual market for jetliners that remain in hot demand in emerging markets, as the West limps out of recession.

Confirming a Reuters report, Japanese-owned SMBC Aviation Capital signed the biggest deal of the show so far by number of units with a $12 billion order for 115 Airbus A320-family jets.

But while money flowed across the table between manufacturers and leasing companies, AirAsia (KL:AIRA) low-cost airline entrepreneur Tony Fernandes waited in the wings with what could be a $12 billion order for some 50 of Airbus's revamped A330neo. Airbus (PA:AIR) and AirAsia declined comment.

Airline deals have been few and far between at the world's largest showcase event, which coincides with growing concern about overcapacity and a string of airline profit warnings.

But leasing companies are putting their faith in steadily growing aviation traffic especially in Asia.

"We do see this as growing our business over the next 10 years," SMBC Chief Executive Peter Barrett told journalists.


The air show has, however, brought renewed evidence of a battle for market share between Airbus and Boeing (N:BA) over sales of narrowbody jets, the backbone of most medium-haul networks.

It comes hard on the heels of two closely watched domestic contests in the UK where Monarch Airlines handed Boeing a critical win by dropping current supplier Airbus, while British Airways owner IAG (L:ICAG) stuck with Airbus after another duel.

But the star of the civil side of the show remained an aircraft that Airbus had not expected to make until recently - a revamped version of its A330 long-haul jet that Airbus says will be able to compete with the much newer Boeing 787 Dreamliner.

Airbus extended the provisional order book to 55 of the new aircraft on Tuesday and was expected to bring the total for the air show above 100 with the imminent announcement from AirAsia.

Boeing has criticized Airbus's latest model as a rehash of tired metallic technology compared with its carbon-composite 787 Dreamliner, which also gathered new orders on Tuesday.

But Airbus and a trio of leasing company buyers said the A330 still made sense for airlines that do not need the full range capability of the 787 or its own A350, even though the smallest member of the A350 family is now sure to be axed.

The defense side of the show remained locked in suspense over the arrival of America's newest combat jet, the Lockheed Martin (N:LMT) F-35.

The radar-evading jet missed its Farnborough debut on Monday after being grounded due to an engine fire, but U.S. military officials have approved a limited flight clearance along with engine inspections, the Pentagon said on Tuesday.

Pentagon spokesman Rear Admiral John Kirby said Washington still hoped the F-35 could fly at the show.

(Editing by Mark Potter)

Financiers keep tills ringing at UK air show

Related Articles

Marketmind: Teutonic shifts
Marketmind: Teutonic shifts By Reuters - Sep 27, 2021

(Replaces chart with correct one) A look at the day ahead from Danilo Masoni. The main takeaway from Sunday's German election is that coalition talks to form the first post-Merkel...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email