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Airbus orders buck trend at Farnborough

Wednesday, July 13, 2016 - 01:46

Airbus may have sprinted toward deals worth $20 billion at Farnborough Airshow. But, as Ivor Bennett reports, a recent boom in aerospace orders appears to finally be fizzling out.

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The talk at Farnborough this year is that orders are struggling to take off. Apparently not the case if you're Airbus, bagging deals worth 20 billion dollars. (SOUNDBITE) (English) AIRBUS CEO, FABRICE BREGIER, SAYING: "We don't see the slowdown. Probably because we are a bit more eurocentric right now with the Brexit we believe everything falls apart. This is not true. The market is very active and positive." AirAsia's Tony Fenandes flew in to finalise an order for 100 A321 neos while India's GoAir signed up to 72 A320 neos. For Airbus, it's a clear pivot towards Asia, despite the Chinese slowdown. (SOUNDBITE) (English) AIRBUS CEO, FABRICE BREGIER, SAYING: "In China, domestic traffic will grow by more than 10 per cent for the next five years. And last year, the international traffic grew by 34 per cent. So crises like that, I can tell you - I love them." He may not love the crisis gripping Britain right now though. The uncertainty caused by Brexit has cast dark clouds over this year's show. But Bregier insists Airbus isn't going anywhere. (SOUNDBITE) (English) AIRBUS CEO, FABRICE BREGIER, SAYING: "You are right, there are ups and downs on the market, there is some uncertainty which is not good, but again, I think it will be temporary and this is very small compared to the growth that we expect from Middle East or Asia. So all in all, this will be minor as far as Airbus is concerned." REPORTER: "So you are committed to the UK no matter what?" BREGIER: "Absolutely." But Airbus does have its problems. Weak demand for the A380 causing the company to cut its delivery target to just 12 a year from 2018 - well below the break-even point.

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Airbus orders buck trend at Farnborough

Wednesday, July 13, 2016 - 01:46