Airbus Soars Ahead: Securing Over 250 Orders at 2018 Paris Airshow, While Boeing Sits This One Out
Airbus Secures Over 250 New Orders While Boeing Remains Orderless
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It's been a rough week for Boeing, after a Dreamliner crash in India claimed 270 lives, shaking confidence in the US aircraft manufacturer. But while Boeing decided to skip the world's largest airshow in Paris, the competition soared ahead as Airbus locked in over 250 orders.
Airbus Making Waves:The Paris Airshow, which runs from June 17th to 23rd, has been a hotbed of activity for Airbus. From Monday through Thursday alone, Airbus, alongside their customers, announced orders and commitments totaling more than 250 aircraft—including some previously announced or booked.
Boeing's Crash and Consequences:Unfortunately, Boeing walked away from the show empty-handed, following the tragic crash of a wide-body 787 Dreamliner in India. Initial investigation hints at a technical defect as the cause, but the details are still being sorted out.
Major Orders and Dreamliner Competition:One of the largest deals at the Paris Airshow, which concludes on Sunday evening, is the firm order from Riyadh Air—a state-owned Saudi Arabian airline—for 25 units of the Airbus A350-1000, Airbus's largest model in its catalog since the production end of the double-decker A380. Further orders for various aircraft came from the Saudi Arabian aircraft financier Avilease, as well as Vietjet from Vietnam, who signed a memorandum of understanding for 100 aircraft, among others.
Airbus's Financial Vision:In addition to its impressive customer acquisitions, Airbus also revealed plans to increase shareholder involvement by boosting its dividend payout ratio to up to 50 percent. Previously, the target range was 30 to 40 percent, a goal that promises sustainable dividend growth.
Looking Ahead:Airbus also confirmed its outlook for this year, with an adjusted EBIT expected to be around 7 billion euros compared to 5.35 billion euros in 2017. The company aims for profitable growth and a cash conversion rate of around 1 over a five-year period, a key figure that shows the efficiency of converting profits into free cash flow. Airbus shares saw a two percent increase on the Paris Stock Exchange following these announcements.
As the dust settles on the Paris Airshow, it's clear that Airbus capitalized on Boeing's absence, securing a significant number of orders while their competitor regroups in the wake of the Dreamliner disaster.
Sources Wikipedia Forbes
- Aircraft Manufacturing
- Airbus Group
- Boeing
- Dreamliner
- Paris
- Aircraft
- Aerospace
- Orders and Commitments
- Aircraft Finance
- In light of Boeing's absence due to the Dreamliner crash, Airbus seized the opportunity at the Paris Airshow to secure over 250 aircraft orders, including vocational training from various businesses and finance providers for its A350 models.
- As Airbus successfully boosted its orders and commitments, the company also announced an increase in shareholder involvement, aiming for a dividend payout ratio of up to 50%, and a cash conversion rate of 1 over a five-year period, all part of its community policy to ensure sustainable growth and profitability.
