With airliner orders rebounding, the focus of discussion at this year’s Paris air show is expected to firmly center on orders and strategic directions for the big aircraft makers.
But the aerospace industry will still be wrestling with multiple challenges as it gathers for the 49th biennial event, held this year June 20-26 at the Le Bourget airport on the outskirts of Paris. High oil prices are a threat to airline customers, a strong euro is a headache for European suppliers and mounting pressure is being felt all the way down the aerospace supply chain as production rates ramp up.
Meanwhile, the defense realm is grappling with its own demons, most caused by budget cuts for the sector both in Europe and the U.S. This is forcing contractors throughout the supply chain to reassess their portfolios, which has already spurred a number of deals this year with more in the offing.
But turbulent times have not depressed attendance. In fact, a record number of exhibitors have signed up, says the general commissioner of the Paris air show, Louis Le Portz, citing 2,129 as confirmed. The event itself sold out about six months ago.
Industry officials are streamlining their approach though, opting for either a slightly larger chalet or exhibit space, rather than supporting both. Le Portz concedes that such a shift is taking place, but quickly adds that any freed capacity has been snatched up by small- and medium-sized enterprises, many of whom are first-time exhibitors.
The strong euro continues to create waves. U.S. companies have complained for the last few years about the high costs of the event, and the currency exchange is behind many decisions to cut back on space (see p. 58). The euro pitted against several other currencies could also influence a potential reduction in attendees. But since hotels and other bookings are made in advance, La Portz believes cost-saving measures will largely result in attendees shortening their stay, rather than canceling outright.
That said, the event will still present an obligatory number of “firsts.” On the military side, the Airbus Military A400M transport will make its formal entry at the Paris air show, its first appearance after the program was effectively birthed here in 1995 as part of a multi-national agreement. The A400M was to have debuted two years ago at Le Bourget, but program delays scuttled those plans.
The same “big splash” presentation is playing out on the commercial side, where Boeing will for the first time bring the 787 twin-widebody to the event. And the 747-8 will be showcased, marking the first major international air show appearance for Boeing’s newest commercial product.
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By Robert Wall, London