Tuesday, 18 June 2013

Paris on track.

Some big orders so far in the first two days of the show but, other than the rather nebulous commitment for 20 A 380s ( Airbus would obviously have preferred to see something solid from a new high profile airline customer like Cathay or one of the Americans) nothing surprising.

We have previously talked about full order books limiting the chance of big new discounted deals for the low cost carriers. Boeing would have had to go very low indeed to make it worth Easyjet switching back to them so today 's announcement that the orange people are sticking with Airbus is as one would expect.

Also expected was the formal launch of the Boeing 787-10 and Singapore, always up to be on the cutting edge is a natural first customer. There have also been rumours that IAG's BA might sign up for a batch this week.If that is correct Heathrow Plc will be hoping that it's not for too many. With a seriously slot constrained business , the airport would like to see its main home based brand increase its number of passengers uplifted per slot used . Replacing 747-400s with smaller aircraft is something they don't want to hear about.

The long term battle between the Boeing and Airbus long haul twins, the A350, the 787 versions and the revamped 777X is going to be fascinating. No single type ticks all the boxes and range v size combinations for most customers .That means numerous  combinations of  numbers ,types and versions up for grabs on all sides. There will be some ferocious negotiations. All good for the airlines.

As for any Paris surprises to come, as we suggested last week, keep an eye skywards. That first flight of the A350 lasted over 4 hours. The temptation to turn north out of Toulouse on a further sortie before the show ends must be very strong.

Meanwhile away from Paris in the very different setting of the G8 meeting at a rural Northern Island golf resort, Britain's Prime Minister, David Cameron, has said of a proposed EU/USA trade ( ie tariff) deal that amongst other things it could mean cheaper air fares ,  - presumably trans Atlantic ones. That will be those cheaper air fares we should be seeing already from all the fuel saved by the squillions spent by airframe and engine manufacturers in efficiency gains. Where have all those gone? Oh yes, and worst of all in the UK, the amount of passenger taxes that governments have slapped on to make sure the benefits have not gone to the customers. Right on Mr Cameron.

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