New entry challenges aircraft supremos

The aerospace industry is preparing to celebrate major milestones at the Farnborough Airshow today as Boeing turns 100 and Canada’s Bombardier marks the entry into service of a new jet designed to challenge the duopoly of Boeing and Airbus. 

The event, which alternates with the Paris Airshow as the industry’s premier showcase, will see new jets displayed including the world’s most expensive warplane, the Lockheed Martin F-35, but is not expected to produce the flood of civil jetliner orders seen in previous years.

After a record multi-year sales bonanza for efficient new models, sellers remain on the road drumming up more business for the show.

But analysts say many airlines are reluctant to make decisions as doubts over the economy disrupt the traditional self-confidence and big money usually displayed at such events.

Despite the uncertainties – including Britain’s shock decision last month to leave the European Union – jetmakers are expected to confirm bullish 20-year outlooks.

They face some doubts over key Asian demand, though there could be surprise orders from one or two of the region’s low-cost players.

Already there have been signs of some order deferrals but Airbus and Boeing have plenty of cushion in their backlogs.

There are particularly concerns over a possible glut in wide-body aircraft later this decade, while smaller planes are still in demand and are expected to dominate orders at Farnborough.

While the latest generation of wide-body jets showcased advances in carbon-fibre airframe construction, the focus of innovation in small ones is led by the engine makers.

Airbus so far leads in a fierce market battle triggered by the latest engine upgrades, but delays in engine deliveries from Pratt & Whitney have left some 25 incomplete jets stranded on the ground in Toulouse.

Airbus and Boeing generally split the market for narrow-body jets which generate most of the industry’s revenue, and without which they could not afford to invest in bigger planes.

That lifeline is increasingly being challenged by new producing nations including Canada, China and Russia.

Canadian manufacturer Bombardier C-Series went into service on Friday but the plane has failed to make a dent so far in sales of the two industry giants.

Doubts are meanwhile increasing over the future of the world’s biggest jetliner, the Airbus A380, while Boeing is trying to prop up a struggling fighter jet business.

The show follows a Nato summit in Warsaw, where allies are laying out plans to reinforce Nato’s eastern flank, plans that are fuelling arms sales across the region.