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Aircraft sales show signs of life after pandemic slump

The multi-billion pound business of buying and selling commercial aircraft was put on hold during the Covid-19 pandemic. However, a rare public place between Ryanair boss Michael O’Leary and Boeing over orders for the latest 737 Max 10 jets from Irish airlines shows that the high stakes game is back. increase.

It’s also a sign that the aviation market is reviving as airlines return to the negotiating table to order jet airliners in anticipation of the return of more passengers.

The pandemic has hit the aviation industry hard. Boeing states that the virus has sacrificed two years of growth in the industry. According to industry watchers, the breakdown of negotiations with O’Leary on a new batch of Max 10 jets shows a more confident approach from US manufacturers.

“It’s good for the industry that Boeing shows some price discipline. Max is a good aircraft. Former Airbus commercial director John Lee Hee told the Financial Times.

Boeing evaluated Ryanair’s business, but only pointed out that he had to exercise discipline and remained modest in his disagreement with O’Leary. Max’s large new orders would have boosted the US group as they continued to build confidence in the aircraft after two fatal crashes.

The company won a series of orders this year, including 150 of the Max 10 from United Airlines. According to Market Watchers, this has also reduced the backlog of Maxjet, which was manufactured but had no buyers, to about dozens.

“For the past year or so, Boeing has offered affordable prices through Max’s friends and family to help clear Max’s backlog. All existing buyers have purchased more.” Said Rob Stallard, an analyst at Vertical Research Partners.

Former Airbus Commercial Director John Lee Hee: “It’s good for the industry that Boeing shows price discipline.” © Christophe Morin / Bloomberg

Traffic recovery is mottled across the industry, but airlines are returning to orders for new planes.

Data from aviation consultancy Ascend by Cirium show 902 new gross orders, excluding cancellations and non-profit customer orders, recorded so far this year by Airbus and Boeing. This is compared to 672 orders across 2020. North American airlines, especially United Airlines and Southwest Airlines, led the rates this year.

“You can see the clear impact of Max orders from US majors [airlines]”” Said Rob Morris, Head of Consulting for Ascend by Cirium.

However, the actual delivery will be much less. During the same period, only 572 aircraft were delivered.

Boeing’s chief strategy officer, Mark Allen, said the company’s sales team is in talks with “many customers around the world.”

“We see demand from different regions. Many airlines recognize that this is an opportunity to reset their plans and fleet intent.”

Dómhnal Slattery, CEO of Irish aircraft leasing company Avolon, said recent orders from US airlines, especially in the last six months, are a positive sign. “It sends a message of confidence in the recovery of the market and also a message of confidence in Max.”

Airbus, another major jet maker in the world, recorded the highest month of airplane orders in August since the outbreak of the Covid-19 pandemic in January 2020.

European companies lagging behind Boeing in this year’s order flow as U.S. rivals replenished their largest backlog in August, including a major deal between Delta and UK low-cost carrier Jet2. Reported 102 total orders to. Orders for 36 A321neo jets by British airlines were considered an Airbus coup because they were traditionally purchased from Boeing.

The airline boss is also clearly confident. Delta Air Lines CEO Ed Bastian told the Investors Conference that the crisis also “creates opportunities.”

“They not only retired many old inefficient planes, but also acquired many new planes, but also gave us a great opportunity to accelerate our fleet development. Not [Airbus] Like 321neos, I’m not afraid to go to the second hand market. It’s not afraid to take advantage of some amazing bargains that will be available as capital-friendly decisions over the years to come, “he said.

Southwest Airlines’ next CEO, Robert Jordan, is aiming to restore the network after the pandemic at the same meeting, so 2022 is expected to be a “big growth year from a pure new aircraft perspective.” He said he was.

Aircraft carriers have begun to consider renewing their fleet, noting that confidence has increased during the strong summer, even in Europe, where recovery is slower than in the United States, industry executives said.

O’Leary, famous for being bullish, is particularly bright despite the collapse of negotiations with Boeing. He told investors Thursday that the new fleet of Boeing aircraft airlines would help bring about a gradual change in growth. Ryanair expects to fly more passengers than previously predicted by March 2026.

However, the revival of air traffic is tentative. Last week, some of the largest US airlines blamed increased cases of infectious delta variants of the coronavirus, revealing a slowdown in demand.

Avolon’s Slattery also warns on a global scale that “it will take at least two more years for us to feel that we are really overcoming the worst.”

Aircraft sales show signs of life after pandemic slump Source link Aircraft sales show signs of life after pandemic slump

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