On the first day of the Paris Airshow, Airbus signed a record 500-plane agreement with Indian airline IndiGo, as robust demand for jets and air defenses competed for attention with the industry's supply chain woes. The multibillion-dollar agreement for single-aisle planes corroborated media reports earlier this month and surpassed Air India's tentative purchase of 470 Airbus and Boeing airplanes earlier this year. The world's largest air show, which alternates with Farnborough in the United Kingdom, is returning to Le Bourget for the first time in four years after the 2021 event was canceled because of the pandemic.
French President Emmanuel Macron arrived by helicopter at the packed aerospace bazaar and witnessed a flying display using Airbus's newest jet development, the A321XLR, as well as air power with the French Rafale fighter. On the civilian side, aircraft manufacturers arrived with rising demand expectations as airlines scramble for capacity to satisfy demand and contribute to the industry's aim of net zero emissions by 2050.
However, meeting that demand will be difficult as suppliers deal with growing costs, part shortages, and a paucity of competent labor in the aftermath of the epidemic. According to industry officials, as many as 2,000 jet orders are up for grabs in a rebounding commercial jet market, on top of those already tentatively announced, as airlines aim to fill a hole created by severe drops in activity during the COVID crisis.
However, only a subset of these prospective new partnerships will be completed in time for this week's air show, which is expected to have a mix of new and repeat announcements, they added. "We won't know the strength of the market or the quality of the orders until these appear in the year-end backlog," said Agency Partners analyst Sash Tusa.