AIRLINES are ordering new aircraft again as the recession recedes and financial markets stabilise, Airbus directors said yesterday.
European manufacturer Airbus and its American rival Boeing both announced new deals at the Farnborough Air Show while British low-cost airline Flybe announced a $1.3bn order for up to 140 Brazilian jets.
Handing over a new Airbus A330F freighter to Abu Dhabi-based Etihad Airways, Airbus chief executive Tom Enders said: “There can be no denying things have been difficult for the business as a result of the downturn, but we believe the economy is starting to improve.
“There is a new level of interest and we are now getting back to where we were three years ago. We are now starting to look forward and we are looking at increasing our production rates in November.
“We are starting to see our customers returning, but there is still a big question mark in terms of finance.”
Officials revealed Airbus has signed a deal with Chilean carrier LAN for 50 planes worth an estimated £3bn.
The deal, the largest single airline order for Airbus in Latin America, includes ten A321s and the aircraft will serve as new and replacement aircraft for existing and new routes.
Hong Kong Airways has also said it intends to order fifteen A350s and another ten A330s.
The orders are good news for workers at the wing making plant in Broughton, near Chester. The 6,000 employed at the factory make wings for all Airbus planes.
Orders for the A320 have created a five-year backlog, and Airbus is considering raising production from 36 aircraft per month to 38.
Airbus chief operating officer John Leahy was bullish at the prospects for air travel, and believes Airbus is well placed to take advantage of future increases.
“Air travel remains a growth market. Every 15 years it doubles and we are well placed in the areas where growth is likely to take place even faster,” he said.
Jim Albaugh, president of Boeing Commercial Airplanes, added: “The aerospace market has come back faster than we expected. We are seeing a significant increase in activity.
“This is going to be a good air show for us and I think it's going to be a good air show for Airbus as well.”
Boeing announced orders for twelve 737s from leasing company Avolon, and three 787s for Royal Jordanian Airlines, as well as an order for sixty 737s from leasing firm ALC.
One of the biggest deals of the show was announced by Brazilian manufacturer Embraer and British low-cost carrier Flybe for thirty-five 88-seat Embraer 175 jets and options for 105 more.
