Airbus racks up orders for planes in Paris, including models produced in Alabama

Airbus racks up orders for planes in Paris, including models produced in Alabama
An Airbus A330neo flies over Le Bourget, France during the 53rd International Paris Air Show on June 17. (Jason Alden/Bloomberg)

Airbus SE cleaned up on the first day of the 2019 Paris Air Show, locking in $13 billion in orders for new jets versus zero for Boeing Co., and introducing a long-range narrow-body meant to deflate enthusiasm for its U.S. rival’s potential new midsize jet.

The Monday haul for Airbus featured major orders from Air Lease Corp., the influential U.S. leasing company that agreed to buy planes worth $11 billion before customary discounts, including the new A321XLR. Virgin Atlantic Airways Ltd. bought eight A330 wide-bodies with options for six more. Delta Air Lines booked an order for five additional Airbus A220 aircraft.

The Airbus assembly plant in Mobile produces the A320 family of airplanes and has produced planes for Air Lease before. A new plant to produce the A220 line of airplanes is under construction in Mobile.

Bloomberg talks with Airbus CEO Guillaume Faury at the Paris Air Show from Alabama NewsCenter on Vimeo.

There’s room to run up the score, said Airbus Chief Executive Officer Guillaume Faury. While Boeing’s workhorse 737 Max, idled in March after two deadly crashes, languishes on the tarmac, Faury said the European planemaker is seeing “very strong demand” for its rival A320 family of single-aisle jets.

A year ago, the tables were turned. Airbus, going through a jarring management transition – fallout from a multi-year bribery investigation – announced 431 orders valued at $62 billion at the alternating Farnborough air show in the U.K. That lagged Boeing’s commitments for 528 jetliners valued at $79 billion through the week last year.

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The Air Lease order, in particular, provided a vote of confidence in the A321XLR, a twin-engine jet that can travel 4,700 nautical miles, more than any other narrow-body on the market. The plane is positioned as a more fuel-efficient successor to Boeing’s discontinued 757, able to connect smaller cities that can’t support service by wide-body jets.

The model is also meant to take the wind out of the sails of Boeing’s planned “new midmarket airplane,” or NMA. That jet, dubbed the 797 by analysts, is on hold while the Chicago-based company works through the Max crisis. Airbus’s decision to start sales of the XLR could help sway customers who had been looking at both options.

Boeing CEO Dennis Muilenburg, while continuing to mend fences with customers and suppliers, gave no ground on either the Max or the NMA. The former will return to service before the end of 2019 and remain the backbone of the company’s short-haul strategy for years to come, he said in a Bloomberg Television interview.

Chief Financial Officer Greg Smith said the Max branding could be dropped, depending on an assessment of consumer and airline sentiment, while Boeing emphasized in a subsequent statement that it has no immediate plans for a name change.

At the same time, Boeing continues work on the mid-market plane, which would sit between single-aisle and wide-body aircraft, with a goal of starting service around 2025.

“The long-term, multi-decade strategy hasn’t changed,” Muilenburg said.

Airbus’s Air Lease deal included the A220 plane that the Toulouse, France-based company acquired last year from Canada’s Bombardier Inc. and has been marketing harder.

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Aviation consultancy IBA Group predicts firm and outline orders will total 575 planes, with 435 going to Airbus. That compares with close to 1,000 at Farnborough – though Jefferies International analyst Sandy Morris pointed out that last year’s show also produced only modest business at the start.

“Like Farnborough 2018, the Paris Air Show started relatively slowly,” Morris said, suggesting Monday’s action will be eclipsed in coming days. “Perhaps the fashion is now for Day 3 to be the high-water mark.”

(Contact the reporters at [email protected], [email protected] and [email protected].)

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