FARNBOROUGH, ENGLAND: 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.
The quintessentially English atmosphere of the Royal International Air Tattoo, where straw-hatted VIPs watch fighters thunder over picturesque Cotswolds villages, gives way on Monday to the Farnborough Airshow, where the hard-nose business deals in the US$800 billion aerospace and defence sector will be done.
Trade tensions between the United States and both China and Europe, disputes over the consequences of Britain’s exit from the European Union 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.
“In short, 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 the need to replace older planes in Western markets.
The bullish outlook was underscored ahead of the show by forecasters Flightglobal Ascend.
The two giants will add to record orders for benchmark narrowbody jets, whose waiting lists underpin their near-record share prices, while seeking a recovery in sales of bigger jets.
After a lull, Boeing will be looking for a boost to its largest twinjet, the future 777X. Sources said recently it is in talks for an eye-catching deal with Saudi Arabia. — Reuters