Plane makers plot course through trade and Brexit worries at Farnborough Airshow

Plane makers plot course through trade and Brexit worries at Farnborough Airshow
FILE PHOTO: Employees are pictured as the first Boeing 737 MAX 7 is unveiled in Renton, Washington, U.S. February 5, 2018. REUTERS/Jason Redmond/File Photo
Updated 16 July 2018

Plane makers plot course through trade and Brexit worries at Farnborough Airshow

Plane makers plot course through trade and Brexit worries at Farnborough Airshow

FARNBOROUGH: Aerospace firms are setting out wares from luxury jets to lethal drones at back-to-back British air shows this week, hoping trade tensions will not deter airlines from buying jetliners even as geopolitical uncertainty allows them to sell more weapons.
In the quintessentially English atmosphere of the Royal International Air Tattoo, gives way on Monday to the Farnborough Airshow, where deals in the $800 billion aerospace and defense sector will be done.
Trade tensions between the US and China and Europe, disputes over the consequences of Britain’s exit from the EU and an increase in global protectionist rhetoric have barely dented a prolonged industry boom.
“The overall environment will reflect industry health, despite the dark clouds of Brexit and other global trade setbacks in the background,” said analyst Richard Aboulafia of Teal Group.
“We’ll see more of what we’ve seen for years: Aviation remaining a strangely protected and happy corner of a turbulent world.”
Boeing is expected to confirm demand for air transport is rising after Airbus lifted forecasts last week, citing strong economic growth in emerging markets and replacing older planes in Western markets.
The two giants will add to record orders for narrowbody jets, whose waiting lists underpin their near-record share price, while seeking a recovery in sales of bigger jets.
Boeing will be looking for a boost to its largest twinjet, the future 777X.
Airbus will hope to end uncertainty over AirAsia’s support for its A330 neo jet, which could also involve a deal for smaller planes, though doubts have been expressed over financial commitments to Airbus.