Farnborough, United Kingdom: US aerospace giant Boeing on Monday fired the first shot in an orders battle with European rival Airbus at Farnborough airshow, clinching a $13.5-billion deal for 100 MAX planes from Delta Airlines in a huge vote of confidence for the crisis-hit jet.
The deal marks a huge turnaround for the MAX jet which had suffered two deadly crashes in 2018 and 2019.
Outgoing British Prime Minister Boris Johnson meanwhile opened the prestigious five-day event as the aviation sector plots its recovery from heavy COVID-19 fallout.
US carrier Delta lodged its first ever order for medium-haul MAX aircraft, with options for 30 more of the fuel-efficient planes as it seeks to replace its aging fleet and cut damaging emissions.
Boeing revealed also that Japanese airline ANA had agreed to purchase 20 of its smaller MAX 8 jets — worth $2.4 billion — plus two 777-8 freight planes.
“The Boeing 737-10 will be an important addition to Delta’s fleet as we shape a more sustainable future for air travel, with an elevated customer experience, improved fuel efficiency, and best-in-class performance,” said Delta chief executive Ed Bastian.
The news comes as airlines worldwide seek to replace aging fleets with fuel-efficient planes that emit less carbon dioxide.
The first visitors to Farnborough, southwest of London, were meanwhile hit by scorching temperatures amid Europe’s ongoing heatwave.
Defense aerospace companies are also expected to emerge as big winners, with Russia’s invasion of Ukraine boosting spending on nations’ armed forces.
Russian companies have been banned from Farnborough due to the war.
The event coincides with fast-moving political turmoil in Britain after Johnson’s recent announcement that he is stepping down as Conservative party leader, sparking a fractious contest to replace him also as prime minister.
“This government believes in aviation and its power to bring jobs and growth to the entire country,” Johnson said Monday as the event opened.
“After three years in the cockpit... I am now handing over the controls seamlessly to someone else. I don’t know who,” he added, sparking laughter from delegates.
Johnson also said that the government was “investing massively in defense.”
This year’s event — one of the world’s largest civilian and defense shows — is the first global aviation get-together since the Paris airshow in 2019, before COVID-19 hit.
Farnborough was canceled in 2020 as the Covid health crisis grounded aircraft and ravaged the sector.
Global air traffic is gradually recovering and in May reached more than two-thirds of its pre-pandemic level, according to the International Air Transport Association.
That recovery has however faced headwinds from rocketing inflation fueled by historically high energy prices and higher wages, while staff shortages constrain airports and spark flight cancelations.
Boeing wins $13.5bn MAX jets deal as Farnborough opens
Boeing wins $13.5bn MAX jets deal as Farnborough opens
UAE non-oil business growth at 1-year high in February: PMI report
RIYADH: The growth of the non-oil private sector in the UAE ticked up to a 12-month high in February, driven by rapid increases in business activity and new work orders, an economic tracker showed.
In its latest Purchasing Managers’ Index report, S&P Global revealed that the UAE’s PMI rose to 55 in February from 54.9 in January.
Any PMI reading above 50 indicates expansion, while a reading below 50 reflects contraction.
The upturn of the non-oil private sector in the UAE aligns with the broader trend observed in the Gulf Cooperation Council region, where countries, including Saudi Arabia, are pursuing economic diversification efforts to reduce reliance on crude revenues.
In January, the Kingdom’s PMI stood at 56.3, the highest in the region, while Kuwait recorded a reading of 54.5.
“The UAE PMI signalled the strongest growth in non-oil business conditions for a year in February, with output increasing rapidly in response to strong inflows of new work. So far, the data points to an encouraging picture for the domestic economy in the first quarter of this year,” said David Owen, senior economist at S&P Global Market Intelligence.
According to the report, stronger output among non-oil sectors was driven by higher demand, successful contract wins, and growth in key sectors including construction, real estate, logistics, and technology.
Additional factors that contributed to this growth include rising tourist arrivals, the expansion of e-commerce channels, and growing demand for AI-related products.
While international orders also contributed to the expansion of the non-oil sector, the increase in export sales remained modest, suggesting that sales growth was mainly driven by domestic demand.
The analysis highlighted that employment numbers rose modestly in February, marking the largest uplift since last November.
UAE non-oil businesses successfully increased their inventories of purchased inputs for the second month running, supported by another rapid improvement in supplier delivery times.
Regarding the future outlook, non-oil firms in the UAE expressed optimism, although the level of confidence declined from the recent high in January.
“The outlook is positive, as demand has continued to pressure business capacity, suggesting additional expansions in output and employment may be necessary,” added Owen.
In the same report, S&P Global revealed that Dubai’s PMI slipped to 54.6 in February from 55.9 observed in January.
Rates of output and new order growth lost momentum, but remained sharp overall, with firms highlighting increased opportunities and new projects.
The release highlighted that demand was also lifted by various factors, including marketing activities, AI adoption, population growth and increased tourism.
