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Farnborough Airshow opens with a focus on aircraft orders and conflicts

Farnborough Airshow will open on Monday, with Boeing and Airbus looking to secure aircraft deals. Defence firms are also vying for their share of the booming budgets for military spending fuelled by the wars in Ukraine or Middle East.

Sources in the industry say that planemakers will announce a number of deals this week. However, they also state that total orders may fall short of analyst predictions of 800 or more aircraft, due to supply-chain constraints which continue to limit production.

Defence companies are also arriving in large numbers as governments increase military spending and learn from conflictes that have highlighted the importance of missile defence systems, drones and artificial intelligence. The opening of the event on Monday coincides with Prime Minister-in-waiting Andy Burnham's first day as a cabinet minister. Burnham could also make an appearance during the July 20-24?event.

Organisers claim that defence companies will make up?half of the record 1,600 exhibitors, which is a departure from the roots of the event in 1948 when it was a showcase of British aerospace technology.

This shift is a reflection of how conflicts in Ukraine and the Middle East, have changed spending priorities, and increased demand for new defence technology, such as unmanned fighter jets, autonomous AI software, and kamikaze drones. The head of Boeing’s commercial aircraft unit stated that the company was focused on increasing and improving aircraft production. "Not order announcements."

Airbus and Boeing will reportedly secure about 300 orders, unless additional deals are struck in the last minute.

The?sources' said that SMBC Aviation Capital of Ireland, a leasing company, is expected to announce a deal for 100 narrowbody - aircraft from each manufacturer. Bloomberg News was the first to report on the deal. No one from the companies involved has commented.

Riyadh Airlines and Philippine Airlines are also in the process of placing orders.

There were no immediate'signs' of a breakthrough between Turkish Airlines and engine manufacturers over long-term agreements the carrier had linked to a plan to purchase 150 Boeing 737 MAX aircraft. (Reporting and editing by Sharon Singleton, Joanna Plucinska Dan Catchpole Tim Hepher Joe Brock David Shepardson)

(source: Reuters)