At Farnborough: Good News for Aircraft Makers

The global slump in the aircraft-manufacturing industry is over.

That, at least, is the takeaway for many from the recent Farnborough Air Show, which is held every two years outside London.

Buoying sprits in the global aviation sector were orders for hundreds of new jetliners worth some $30 billion issued during the week-long event. The increase means new opportunities for aircraft manufacturers and their subcontractors at a time when budget cuts worldwide are limiting defense orders.

"The number of orders shows that the economic recovery is on its way," Commercial Aviation Consulting analyst Max Sukkhasantikul told the Associated Press.

"The business will stay hot, because it's a hot cycle," Marlin Dailey, Boeing's commercial sales chief, said in an interview with Bloomberg. "Whether that will translate into orders is hard to say, but there's definitely a lot of interest. On balance, we'll see a growth trend over the next couple of years," he added.

Leading the way at Farnborough were Airbus SAS and Boeing Co., which received orders totaling 237 jetliners, the lion's share of contracts won during the show. The Farnborough Airshow is one of the world's largest aviation gatherings, attracting 200,000 visitors, and more than 1,000 exhibitors from 38 countries.

Airbus won 130 contracts worth some $13 billion, while Boeing received 103 orders worth $10 billion. Also gaining: Embraer, or Empresa Brasileira de Aeronautica SA, which got 37 contracts worth $1.4 billion for its regional jets, and Bombardier, which took in 23 orders worth $1 billion.

Boeing's deals included contracts with Air Austral, a French airline, and Qatar Airlines for two long-range 777-220 aircraft worth just over $1 billion each. The U.S. aviation manufacturing giant also recorded sales for its fuel-efficient 787 jetliner, which made its international debut at Farnborough

Meanwhile, the International Air Transport Association is predicting a return to profitability for airlines this year after a loss of $9.4 billion in 2009.

"The industry continues to recover faster than expected, but with sharp regional differences," said Giovanni Bisignani, IATA's Director General and CEO. "The question is how long can the industry maintain the double-digit momentum. Business confidence remains high and there is no indication that the recovery will stall any time soon," said Bisignani.