Amidst recovering passenger traffic, increasing capacity and networks, recruitment drives and a promises for cleaner, greener and a more sustainable aviation industry, the 54th Paris Air Show kicked off with post-pandemic positive sentiments riding high.
The atmosphere was filled with the anticipation of new aircraft orders, signing of new contracts, and billions of dollars’ worth of deals. As in prior years, the place was a hive of activity with breath-taking aerial displays, eye catching products and buzzing conversations. After a slow start, the orders started to roll in.
‘Paris’ Air Show or ‘India’ Air Show?
There was one buzz word that filled the air around Le Bourget, and that was ‘India’. Already crowned as one of the fastest growing aviation markets in the world, India sealed the deal by announcing mother of all aircraft orders, a mammoth 500-aircraft order by IndiGo worth $500bn followed by Air India firming up its 470-aircraft order, rounding off to 900-plus orders coming from the Indian sub-continent.
Airbus and Boeing recorded a total of 1,100 aircraft orders at the show, of which 970 were from India. With these massive orders, Indian carriers now have the second-largest order book, with over 6% of the industry's backlog, behind only the United States.
After the record-breaking order from IndiGo, social media was flooded with comments from aviation experts. “The world is abuzz with the massive orders placed by Air India and IndiGo (InterGlobe Aviation Ltd) at Paris. This undoubtedly shows the strength and the future of Indian aviation in general. In the same breath, we must remember those that will enable both these goliaths to take and finance those aircraft (banks, leasing companies, etc.) are currently battling in Indian Courts to repossess their aircraft,” commented Nitin Sarin, Managing Partner at Sarin & Co.
“Aviation is a barometer for the larger economy and these are great positive signs for both India and Indian aviation. The latest and greatest airplane technology is coming to India and this should spur aerospace engineering and airlines as a career of choice for our youth again,” posted Rakesh Dixit, Head of Engineering at Air India. “We need great talent to manage all these airplanes. Let's celebrate for now and buckle up for the amazing growth that's coming.”
“The buying spree by Indian airlines adds to signs of strong global demand for civilian aircraft as travel rebounds from the pandemic and airlines look to reduce their environmental impact with more fuel-efficient new models,” posted Bhavana Yerrumreddy, Partner, Technology consulting at EY. “I am personally super thrilled to see the industry revive so quickly and back in action roaring. Interesting and exciting times for Indian Skies and watch if Indian aviation is going to be duopoly.”
“Staggering to hear the record aircraft orders of 970 aircraft for India, putting the country and continent firmly on the map for the future! (500 IndiGo and 470 Air India),” added Leon of Airline Management Group. “Overall, it was a pleasure to see the aircraft, exhibitors and meet face to face with industry colleagues at what felt to be a historic event.”
According to IBA, total orders including Firm, MoUs, LOIs and Options reached 1,303 aircraft, worth $72.4bn. This marks an impressive total, with only 2013 accruing a larger tally. Out of these almost 89% or 1,160 were firm orders, the highest ever recorded at the event.
Qantas opened the second day of the show with an incremental order for nine A220-300s, while PAL opted for nine A350-1000s as part of its Ultra Long Haul Fleet project. There were many orders for Embraer and ATR aircraft, as well as new leasing deals announced. It was also a good day for the new eVTOL offerings, with a swathe of LOIs being signed for a number of the more advanced options.
Many airlines firmed up previous commitments at the air show today, including Air India for its bumper 290-aircraft order.
Airbus v Boeing
If we compare the orders received by the two mainline OEMs, Airbus received more net orders for commercial jets than Boeing for the tenth time in the last 11 years. Airbus closed the week with orders for over totalling 846 across its range. This is over double Boeing’s 356 orders. Interesting Airbus also succeeded in the widebody sector in 2023, with 72 firm orders to Boeing’s 40. Boeing had exceeded Airbus in widebody orders in eight of the last ten years.
Avolon lead lessor orders
Avolon’s 40x 737s and 20x A330 order, as well as an 80 LEAP engine deal was the largest order announced during the show among lessors.
In its market analysis, IBA claims that Avolon’s ratio of orders to current fleet is getting closer to parity, similar to the likes of well-known speculative lessors like Air Lease Corporation (ALC). In an aircraft supply bottleneck, leasing companies have more control over lease rental pricing, which is a turnaround from the norm of the past few years where airlines were used to receiving multiple lessor offers for sale and leaseback aircraft deals.
Avolon’s A330s are expected to be delivered through 2026-2029, with the narrowbodies likely in the 2030s.
Advocating his strong support of the A330neo programme since launch, Andy Cronin, chief executive, Avolon commented: “With our existing widebody orderbook fully placed we are now locking in future growth in a supply constrained environment. Our expanded delivery pipeline allows us to offer our customers the A330neo’s range and reduced emissions to support their evolving fleet needs. Our recent aircraft orders and commitments reflect our confidence in the long-term growth trajectory of the aviation sector, which is outlined in our recent World Fleet Forecast projecting that the global passenger fleet will almost double by 2042.”
eVTOLs rule the roost
A hot issue for the entire industry, it was unsurprising that sustainability was the central theme of the 2023 Paris Air Show with eye-catching hybrid and electric vertical takeoff and landing (eVTOL) air taxis and drones on display.
“Sustainability was unsurprisingly a major theme,” commented Ben Leon, CCO, Airline Management Group. “The challenge of achieving net zero is monumental, the change required radical, the innovations disruptive, we see opportunity, and it was great to see all areas of the industry showcasing the latest developments from engine efficiencies, to SAF, to hydrogen, hybrid-electric aircraft and all-electric eVTOL, as well as exciting innovations at the Air Lab, and developments and announcements from Airbus, ATR, Boeing, DeHavilland, Embraer and ZeroAvia.”
Volocopter’s two-seater air taxi, Volocity, opened the daily flying display. In Hall 5 at Le Bourget, aviation enthusiasts enjoyed one of the largest congregation of eVTOLs under one roof. Archer’s Midnight vehicle grabbed attention while Lilium’s cabin mock-up depicted how six passengers will ride up to 155 miles in its Lilium Jet. Eve Air Mobility’s cabin mock-up let visitors hop on a virtual ride to get a feel of eVTOL glide.
Other major eVTOLs were also present namely, Ascendance Flight Technologies, AutoFlight, EHang, Hyundai-backed Supernal, Overair, Joby, and Wisk Aero.
The Show Stopper
One airline with sparking purple livery grabbed the passers-by attention was Saudi Arabia’s new Riyadh Air, the aircraft was prominently kept on static display turning heads. The airline, which is targeting commercial launch in 2025, has already placed a large order with Boeing for 787-9 Dreamliner jets in March 2023, with 39 confirmed orders and options on a further 33.
The airline, which will join the global aviation sector with RX as its Airline Designator Code, is being described as a “catalyst for the Kingdom's National Transport and Logistics Strategy and the National Tourism Strategy by leveraging the Kingdom's strategic location connecting Asia, Africa, and Europe”. The new airline is chaired by governor of the Public Investment Fund, His Excellency Yassir Al-Ramayyan with Tony Douglas CEO at the helm. The new airline has also attracted more talented aviation professionals with ex-Etihad Adam Boukadida and ex-Emirates Michael Nissyrios joining Riyadh Air’s finance team.
The future of air shows
With the focus on the importance of driving sustainability in aviation, there have been some who have doubted the future of international air shows. However, the popularity of air shows remain as high as ever if the attendee numbers are any guide. The organisers recorded 400,000 visitors during the weeklong exhibition, which hosted 2,500 exhibitors from 46 countries, 150 aircraft, 130,000 unique professional visitors and 170,000 general public visitors, with approximately $150 billion worth of contracts signed during the event.
The Paris Air Show holds a special place in aviation industry and this year with exhibits from supersonic jets, electric aircraft to advanced avionics, unmanned systems and next-gen aircraft, this year’s show was an eye-opener for what lies ahead.