Boeing won a major vote of confidence at the Paris Airshow on Tuesday as British...
LE BOURGET, France - Boeing won a major vote of confidence at the Paris Airshow on Tuesday as British Airways owner IAG signed a letter of intent to buy 200 of its 737 MAX aircraft that have been grounded since March after two deadly crashes.
Airbus, the current supplier of IAG’s British Airways and Vueling brands, was stunned by the announcement which came months after it lost a major BA wide-body aircraft order to its U.S. rival. Industry sources said it seemed unlikely the European company had been offered a chance to bid. Boeing is working on a fix to anti-stall software blamed for the crashes and hopes to get approval from regulators to get the jet back flying by the end of the year.
“We can’t thank you enough for the confidence you placed in the Boeing family,” Boeing’s head of commercial airplanes Kevin McAllister said in response to IAG’s support.Airbus’s shares, meanwhile, were up 0.5% at 125.6 euros, having earlier hit a record high of 126.5 euros after the company struck a series of deals at the air show.
With airlines struggling to contend with overcapacity, slowing economies and geopolitical tensions, some analysts warn Airbus and Boeing could face a growing number of cancellations from their bulging order books.But the planemakers remain confident of continued strong demand for more fuel-efficient jets as emissions regulations tighten and air travel continues to rise, driven by Asia’s growing middle classes. Boeing on Monday increased its 20-year industry demand forecast.
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