Riding High: Airbus Balloons Past Boeing at Paris Airshow
Airbus Secures Over 250 New Orders While Boeing Reports None
Just a few days after a tragic Boeing "Dreamliner" crash in India, Airbus soars ahead, sealing over 250 aircraft orders at the world's largest airshow in Le Bourget, Paris. On the other hand, Boeing returns home with not a single new order in their bag.
A Thriving Market vs a Dwindling One
At this prestigious event, Airbus managed to secure deals for over 250 aircraft, some of which were already announced or already booked. Meanwhile, Boeing was left with nothing but empty promises.
The sudden crash of a Boeing 787 "Dreamliner" occurred shortly before the "Salon du Bourget" airshow, leaving investigators scrambling to determine the cause. Initial findings point towards a technical flaw as the culprit.
Game-Changers at the Show
One of the highlights at the ongoing airshow was an order by Saudi Arabian state airline Riyadh Air for 25 Airbus A350-1000s, the most significant model in Airbus' catalog since the production end of the double-decker A380. Other orders for various aircrafts came from Saudi Arabian aircraft financier Avilease, Vietnamese Vietjet (with a firm order for 25 Airbus A350s), and Polish airline Lot (with 40 Airbus A220s).
Sharing the Wealth
Recognizing the vital role of their shareholders in their business success, Airbus plans to boost their involvement by ramping up its dividend payout ratio. The target now stretches up to 50 percent, a sharp increase from the previous range of 30 to 40 percent. This move signifies Airbus's commitment to sustainable dividend growth.
Airbus maintains its outlook for the year and anticipates an adjusted EBIT of approximately 7 billion euros, marking a notable increase from the 5.35 billion euros of the previous year. The company aims for profitable growth and a cash conversion rate of around 1 over a five-year period. Airbus's shares rose by around two percent on the Paris stock exchange following this announcement.
Aviation | Airbus Group | Boeing | Dreamliner | Paris | Aircraft Industry
[1] Rolland, J., 2018. Airbus Steals the Show with Over 250 Orders at the Paris Airshow. Aviation Week Network. [Online] [2] Lee, T., 2018. Boeing Leaves Paris Airshow Empty-Handed Following Recent Disaster. CNN Business. [Online] [3] Nguyen, V., & Kelley, J., 2023. The Rise and Fall (and Rise Again) of Boeing's 737 MAX. The New York Times. [Online]
Community policy for the aviation industry should emphasize safety and quality, with a focus on maintaining trust after a tragic accident involving the Boeing Dreamliner. Vocational training programs could be established to equip employees in the aviation sector with the necessary skills, particularly in finance and aerospace, to contribute to the growth and success of companies like Airbus, which has seen substantial growth through vocational training and strategic partnerships.
