Turbulent times
June 15, 2009
The Paris Air Show is held every two years at the Le Bourget airport just outside Paris and is traditionally a place where contracts with airline manufacturers are inked. But deals like the one announced Monday by Qatar Airways for 24 Airbus A320 jets are likely to be the exception at this year's Paris Air Show in light of the global economic recession.
European aircraft manufacturer Airbus and American aviation company Boeing are among the companies hardest hit by the global recession. Even if new orders come in, they won't necessarily mean a light at the end of the tunnel for either company. Many new purchases are offset by cancellations of previous deals made during the peak of an aviation industry boom, which occurred around the last Paris Air Show two years ago.
Delivery delays
Additionally, both companies are struggling to deliver on the large backlog of orders they still have. The Airbus A400M military transporter, which was originally scheduled for delivery at the beginning of this year, has seen major delays. The future of the 20-billion-euro ($28 billion) project is at risk as some clients have threatened to cancel their orders.
Boeing's 787 Dreamliner, a fuel-efficient, long-haul aircraft, has also seen its share of delays. Speculation that the Dreamliner would make its first test flight at the Paris Air Show has been put to rest by Boeing representatives attending the event, who say the test flight is scheduled for the end of the month.
Future of aviation industry unclear
Statements from Boeing and Airbus executives reflect mixed expectations when it comes to the future of the airline industry. Scott Carson, head of Boeing's commercial airplanes division, said he remained optimistic that the industry would bounce back by mid-2010. Airbus Chief Executive Tom Enders didn't go so far as to say he expected a turnaround inext year, but said that 2010 and 2011 would be critical years for the aviation sector.
On top of the grim financial future of the airline industry, many questions still surround the recent crash of an Air France A330 Airbus in the Atlantic that claimed the lives of all 228 people on board. The plane was scheduled to land in Paris after taking off from Rio de Janeiro on June 1.
Despite that tragedy, and the dark clouds over the future of the airline industry, attendance at the Paris Air Show does not appear to have suffered since 2007. Around 2,000 exhibitors from over 40 countries are in attendance, and event organizers expect about 300,000 visitors throughout the week-long exhibition.
mz/AFP/Reuters/AP
Editor: Susan Houlton