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Home Commodities

Paris Airshow opens under cloud of India crash, Mideast conflict

by Market News Board
8 hours ago
in Commodities, Crypto, Economy News, Gold, Market Overview, Oil, Silver
Paris Airshow opens under cloud of India crash, Mideast conflict
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PARIS (Reuters) -The Paris Airshow opens on Monday with its usual fanfare of aircraft orders expected to be tempered by concerns over India’s deadliest air disaster and escalating missile strikes between Israel and Iran that have rattled the global aviation industry.

Every two years, Le Bourget Airport in the northeast of Paris is transformed into a showcase for the aerospace and defence industry, its sprawling tarmac lined with fighter jets, commercial airliners and autonomous drones.

In the pristine white chalets along the flight line, aerospace executives, government officials and military delegations gather to strike deals and discuss the geopolitical forces shaping the future of aviation.

Delegates say they expect this year’s event from June 16-20 to be more sombre and several public activities to be scaled back after last week’s air disaster, when an Air India Boeing 787 crashed shortly after takeoff, killing over 240 people.

Investigators are gathering data on the engine, wing flaps and landing gear, though it is too early to draw conclusions, a source familiar with the matter told Reuters in India.

India’s aviation regulator has ordered safety checks on the airline’s 787 fleet.

The industry has also been shaken by missile strikes between Iran and Israel, which erupted on Friday – just a day after the India crash – forcing carriers to cancel or divert thousands of flights in the latest upheaval to travel in the region.

Aerospace and defence executives are also grappling with uncertainty over U.S. President Donald Trump’s shifting tariff policies, which many say have been impacting aircraft, engines and parts, disrupting global supply chains, driving up production costs and straining international partnerships.

The show’s opening coincides with the 10th anniversary of Trump’s first run for office in 2015 ahead of his first term. But it is the trade policies of his second term that have caused the industry to defend its previous tariff-free status, as a pause in his “Liberation Day” tariffs nears a July 8 deadline.

AIRBUS POLAND WIN EXPECTED

Boeing’s CEO Kelly Ortberg and Commercial Airplanes boss Stephanie Pope cancelled their trip to Paris and the U.S. planemaker is scaling back its schedule at the event as it focuses on supporting the India crash probe.

The planemaker is eager to keep a low-key presence and avoid any jarring publicity, though it was too late to remove Boeing advertising banners dominating the venue. Behind Boeing’s chalet at Le Bourget, a gleaming Riyadh Air 787 sits on the tarmac.

Boeing is emerging from back-to-back safety, industrial and corporate crises triggered by fatal accidents involving the smaller 737 MAX, which is a separate model to the newer 787.

Aircraft deals will still be announced at the show, where European politics are also driving some of the discussions.

Sources told Reuters that Poland is expected to announce Airbus as the winner of a landmark deal to sell around 47 A220 jets to state carrier LOT – part of a wider reset of relations between Poland and France, where Airbus has its headquarters.

Brazil’s Embraer had pushed hard for the deal, the people said. None of the parties agreed to comment.

Airbus is also the front-runner against the same planemaker for a potential order for dozens of A220 jets from AirAsia, with Airbus reviving a proposal for a tighter 160-seat cabin layout while separately showing airlines a stretched version featuring existing Pratt & Whitney engines, sources said.

Airbus was also expected to kick off the event with two Saudi orders from AviLease and Riyadh Air.

Boeing has shelved most announcements including a fleet shake-up by long-time customer Royal Air Maroc, but had already been heading for a quieter week than Airbus after pre-empting the show with big orders during Trump’s recent Gulf visit.    

The air show is also an opportunity for established and emerging defence and space companies to showcase cutting-edge technologies such as AI and autonomy.

(Reporting by Joe Brock, Tim Hepher, Paul Sandle, Giulia Segreti. Editing by Mark Potter)

By Joe Brock, Tim Hepher, Giulia Segreti and Paul Sandle

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