Aviation summit taking place amid aircraft shortage, supply chain turbulence

- A Monitor Desk Report Date: 24 July, 2024
Aviation summit taking place amid aircraft shortage, supply chain turbulence
Britain's Prime Minister Keir Starmer speaking to employees at the Farnborough International Airshow on July 22, 2024

Dhaka: Aviation leaders are meeting at a marque summit outside London since July 22 while the industry struggles with supply chain disruptions, aircraft delays and struggling plans to reduce carbon emissions.

The Farnborough Airshow taking place till July 26 is witnessing a gathering of top executives from airlines, aircraft makers and weapons manufacturers.

Earlier, it has often witnessed plenty of orders for passenger jets from Boeing and Airbus. However, this time, according to reports, the show is not expected to produce many orders as Airbus struggles to reach delivery goals and Boeing adopts a low-key posture amid its safety crisis following an incident of a door panel flying off a 737 MAX aircraft in January 2024.

However, some deals will get over the line, added reports citing delegates. Virgin Atlantic is close to placing a top-up order for Airbus A330neos and Flynas  is poised to order up to 30 of the same widebody aircraft, as per reports.

Japan Airlines is expected to firm up recent tentative orders for aircraft and Boeing is seeing leasing interest for its 737 MAX, while Turkish Airlines is in the midst of negotiations to buy Boeing aircraft, added reports.

Industry stakeholders are looking for any further sign of weakness in air passenger demand following a handful of profit warnings from airlines. With dealmaking limited, the focus is likely to fall on how to remove supply chain blockages and speed up the delivery of planes to frustrated airlines.

Stephanie Pope, Boeing’s head of commercial aircraft, said at a media briefing on July 21 that 737 MAX production was improving and the company was undergoing “transformational change” across safety and corporate culture.

Airbus Chief Executive Guillaume Faury also told journalists on July 21 that the planemaker was making progress ramping up production of its top passenger jets.

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