Paris show takes off
ROLLS-ROYCE announced a bumper $2.1bn (£1.35bn) order deal for its engines at the Paris Air Show yesterday, defying the gloomy mood surrounding the biennial event.
The company said its engines will power planes belonging to Middle East carriers Gulf Air and Qatar Airlines, as well as Germany’s Condor, and Royal China.
But bleak sentiment has overshadowed the usually glamourous event.
“Very few aircraft orders are expected to be announced this week,” Barclays Wealth’s Peter Caldwell said yesterday.
However, the first day of the show saw several companies announcing orders.
Qatar Airways ordered 24 Airbus A320 jets, a deal worth $1.84bn, while Spanish airline Air Nostrum has confirmed an order for 35 Bombardier CRJ-1000 jets, worth $1.75bn.
Hungarian airline Malev also signalled its intent to purchase 30 Russian-made Sukhoi Superjet 100 aircraft, a deal worth up to $1bn.
“Bad though the immediate outlook is, it’s far more likely that orders will be deferred rather than cancelled,” Howard Wheeldon at BGC Partners said.
Plane maker Boeing has said it does not expect to win many new orders from the show.
Meanwhile, rival Airbus has targeted 300 gross orders for 2009, before cancellations, compared to 1,458 last year.
Boeing and Airbus are helping airlines to buy planes as they struggle through the downturn by assisting them in raising finance.