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Narrowbodies dominate first day ordering at Farnborough – Suppliers Share Wrap

20-Jul-2010

The popularity of the current generation of narrowbodies continues unabated, with both Airbus and Boeing announcing strong orders for their respective A320 and B737NG families. While Emirates may have stolen the headlines with its order for 30 B777-300ERs, orders for narrowbodies totaled more than 150 aircraft, with leasing companies weighing back into the commercial aircraft market.

GECAS was the largest buyer, with orders for 60 A320 family aircraft and 40 B737NGs. Air Lease Corporation (ALC), the aircraft financing and leasing company recently formed by ILFC founder and ex-CEO, Steven Udar-Hvazy, announced orders for 30 A321s and 21 A320s. Norwegian Air Shuttle also weighed in to the narrowbody ordering spree, exercising an option for 15 B737NGs.

Apart from Emirates, the only other major widebody order of the first day came from Aeroflot, which confirmed a purchase for 11 A330-300s. Sukhoi had a breakthrough order in the Asia-Pacific, with Indonesia’s Kartika Airlines ordering 30 Superjet 100s. Embraer also announced a regional jet order, with five E195s going to Azul.

Boeing and Airbus are due to announce their decision on whether they will adopt new engines on their narrowbodies before the end of the year. Airbus reportedly plans to make an announcement by the end of Sep-2010, while Boeing confirmed that it would set a “strategic direction with respect to further developing the B737 and new airplane designs within a few months.”

With air travel returning, airlines are eager to see which direction Boeing and Airbus will take on the question of re-engining. The relatively lacklustre sales of the Bombardier CSeries, with just 90 orders in two years, stands in stark contrast to the popularity of the A320/B737NG. Bombardier is pressing ahead with the CSeries regardless, and is still confident that the aircraft will be a success.

Farnborough Air Show Day-1: Aircraft orders

Purchaser

Supplier

Aircraft

Quantity

Engines

Value

Notes

GECAS

Airbus

A320 family

60

CFM56-5B

 

To be fitted with sharklets

GECAS

Boeing

B737NG

40

CFM56-7B

   

Air Lease Corporation

Airbus

A320

31

CFM56-5B

   

Air Lease Corporation

Airbus

A321

20

CFM56-5B

   

Norwegian

Boeing

B737-800

15

CFM56-7B

   

Qatar Airways

Bombardier

Global 5000

2

BR710A2

 

For business aviation unit

Aeroflot

Airbus

A330-300

11

Trent 700

   

Azul

Embraer

E195

5

CF34-10E

USD211 m

 

Kartika Airlines

Sukhoi

Superjet 100

30

SaM146

USD951 m

 

Farnborough Air Show Day-1: Engine orders

Purchaser

Supplier

Engines

Quantity

Value

Notes

China Southern Airlines

International Aero Engines

V2500

40+

USD400 million +

Includes a long-term IAE aftermarket services agreement

Malaysia Airlines

Pratt & Whitney

PW4170 Advantage70

34

USD680 million

 

GECAS

CFM International

CFM56-5B

120+

USD840 million

 

GECAS

CFM International

CFM56-7B

80+

USD560 million

 

Air China

CFM International

CFM56-5B

40+

USD600 million

Includes rate per flight-hour MRO agreement

Emirates

Engine Alliance

GP7200

128+

USD4.8 billion

Includes a Fleet Management Agreement

Yemenia

International Aero Engines

V2500

20

USD300 million

 

Aeroflot

Rolls-Royce

Trent 700

22

USD650 million

Includes a long-term service agreement.

TAM Linhas Aereas

Pratt & Whitney

PW4000-100 Advantage70

4

USD100 million

 

Bombardier slumps, Embraer and Boeing gain

In trading yesterday Bombardier was the biggest loser, down 6.5%, as the long-awaited CSeries order from Qatar Airways failed to materialise. Qatar Airways confirmed it is still interested in the aircraft, but unspecified issues have gotten in the way of negotiations.

Embraer and Boeing both posted strong gains, while EADS was also up, but not as strongly. European Transport Ministers from Spain, Britain, Germany and France confirmed they would continue to support EADS, Airbus and the A350 XWB programme with reimbursable launch aid instruments. The European Commission also confirmed it would launch a protest at the WTO’s repeated delays over its ruling on Europe’s case against US subsidies to Boeing.

Selected Original Equipment Manufacturers daily share price movements (% change): 19-Jul-2010

Aircastle (+4.1% led the lessors higher).

Selected Aviation Suppliers & Leasing daily share price movements (% change): 19-Jul-2010


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