Air Show Paris 2025 Recap: Political Tensions, Huge Orders, and a Decarbonization Plateau
In a significant move, the United States government has decided to lift export restrictions and reinstate licenses for GE Aerospace, allowing the company to resume exporting key aircraft engines to China's Commercial Aircraft Corporation of China (COMAC). This development comes after a brief suspension in late May 2025, when escalating trade tensions led to a tariff war and the suspension of critical propulsion systems for COMAC's C919 and C909 aircraft.
The resumption of engine exports is crucial for COMAC's ambitions to compete internationally against Airbus and Boeing. The C919 and C909 rely heavily on Western propulsion technology, and the ability to secure LEAP-1C and CF34 engines means COMAC can continue deliveries and maintain its production schedules. Without these engines, COMAC could have faced severe production halts once current inventories were exhausted, potentially undermining its strategic goal to build a competitive domestic aviation industry and expand exports.
This decision signals a notable easing of the US-China trade tensions in the aerospace sector, restoring a critical supply chain link for COMAC's aircraft production. It also benefits CFM International, the joint venture between GE Aerospace and France’s Safran that produces the LEAP-1C engines, by enabling continued sales to one of its most significant emerging customers.
The commercial airliner supply chain is set up based on the assumption of zero-to-minimal tariffs. However, geopolitical tensions, tariff threats, and conflict have cast a shadow over the industry. The Paris Air Show 2025, for instance, was marked by such tensions, with Boeing marking zero orders due to the Air India flight 171 crash, and Airbus announcing a densification effort for the A220 to increase its maximum capacity from 149 to 160 seats.
Despite these challenges, the aerospace industry continues to push for decarbonization efforts. However, these efforts seem to have hit a roadblock at the 2025 Paris Air Show, with partnerships on carbon capture and initiatives in cooperation with airlines notably absent.
As the industry navigates these challenges, partnerships and collaborations remain key. For instance, France's Safran and US manufacturer Crane have agreed to supply COMAC's widebody, the C929, but it's unclear if these agreements will be realized. Similarly, US airlines are taking delivery of new Airbus widebody airliners overseas to avoid tariffs, while LOT Polish Airlines placed a major order for 40 A220s, split evenly between the A220-100 and A220-300 models.
In conclusion, the recent US decision to allow GE Aerospace to restart engine exports to COMAC is a positive step towards easing trade tensions in the aerospace sector. It restores a critical supply chain link for COMAC’s aircraft production and supports ongoing sales of the CFM LEAP-1C engines within this strategically important market. However, the industry continues to face challenges, including geopolitical tensions, tariff threats, and the need for decarbonization, which will require continued collaboration and innovation.
- The reinstatement of engine exports from GE Aerospace to China's COMAC is instrumental for COMAC's international competition with Airbus and Boeing, as the C919 and C909 heavily depend on Western propulsion technology.
- The lift on export restrictions benefits CFM International, a joint venture between GE Aerospace and France’s Safran, enabling continued sales to one of its significant emerging customers, COMAC.
- Amidst the aerospace industry's efforts for decarbonization, partnerships and collaborations such as the agreement between France's Safran and US manufacturer Crane to supply COMAC's widebody C929 remain crucial for overcoming obstacles.
- Despite the ongoing challenges, including geopolitical tensions, tariff threats, and the need for decarbonization, the aerospace industry will need to persevere and innovate in order to maintain critical supply chain links and ensure strategic growth in key markets like China.
