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Mayank Marwah
Mayank Marwah
Articles (550) 

What Airbus Has Up Its Sleeves for the Paris Air Show

Airbus faces order slumps and looks to bag orders

June 19, 2017 | About:

The European aerospace player Airbus (EADSY) is about to make its appearance in the Paris Air Show, looking to showcase its latest technology to win contracts.

Several airplane manufacturers make announcements regarding the number of orders in the Paris Air Show. Boeing (NYSE:BA) has already expressed its intensions of officially unveiling its 737 MAX 10 at the Paris Air Show. What does Airbus have up its sleeves?

The Paris Air Show happens to be the most extravagant air show in the world. Here’s where Airbus will look to showcase a wide and extensive range of technologies, products and services.

Airbus struggles with orders

Speaking of the past, the aerospace behemoth has had the largest backlog ever in the history of the airplane business. The company received 1,258 net orders on an average basis in the first half of the decade. The orders have come to a halt this year.

Year to date, the company received only 73 orders (before making allowance for order deferrals). No wonder these order deferrals or postponements could turn into cancellations. The good news is that Airbus has a colossal order backlog of its A320 and A350 families which can help it undergo temporary order slumps.

Though the company has orders of 210 units for the next generation A330neo, the company needs to bag some more solid orders since a portion of the current backlog is slated to be delivered around a decade from now. As far as the A330 is considered, Airbus has a backlog of 125 units, which can be cleared in two years’ time. It is critical for the Toulouse-based aircraft manufacturer to win some good orders, and what better platform than the Paris Air Show.

Airbus looks forward to the Paris Air Show

The all-new A321neo and A350-1000, the newest member of the A350 XWB family, would feature at the Paris Air Show held in Le Bourget. Both of the new models have been through their testing periods. The company’s Defense and Space segment would comprise A400M, C295 as well as the Eurofighter Typhoon. The space business is also vital and Airbus would look to transform and reshape this segment through on-orbit service.

The Airbus A380 would also make its presence felt at the Paris Air Show. It would come up with some new innovations that would help the plane improve fuel efficiency. This double-decker wide-body airplane would be fitted with winglets that would support the company’s sales by claiming to make it more fuel efficient and thereby lower fuel costs.

Last word

The Paris Air Show is of great importance this year not only for Airbus but archrival Boeing as well as both would be battling it out to get more deals. Conventionally, the headlines of the Paris Air Show week are dominated by big announcements of massive orders won by the two aerospace behemoths. While Boeing is looking forward to officially unveiling the 737 MAX 10 and launch the new midsize airplane, Airbus would be looking to grab deals for the A330 and A380 families so as to keep the production process uninterrupted. It would be interesting to watch the rivalry between the two aerospace stalwarts trying to dominate the world’s biggest air show.

Disclosure: I do not hold any position in the stocks mentioned in this article.

About the author:

Mayank Marwah
A seasoned writer with keen interest in the automotive, technology, telecommunication, retail and aerospace sectors.

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