Turbulent times at the Paris Air Show: Customs and aircraft orders in focus

Turbulent times at the Paris Air Show: Customs and aircraft orders in focus

The aviation industry is at the center of events these days, and with full force. On the occasion of the Paris Air Show, which takes place every two years at Le Bourget Airport in the northern Parisian banlieue, the industry discusses the numerous challenges and opportunities. This show, the largest biennial aviation exhibition in the world, is attracting strong visitor numbers this year after a four-year hiatus and is estimated to be attended by over 300,000 people, including many professionals and decision-makers from across the industry. Demand for new jets and air defense systems is particularly high again as travelers return in droves after the pandemic. However, Airbus boss Guillaume Faury assumes that unforeseen events will cause problems for the industry. For example, you may also have noticed that the recent tragic crash of an Air India Boeing 787, in which almost 300 people died, resulted in Boeing boss Kelly Ortberg and Stephanie Pope having to cancel their participation, casting a shadow over the trade fair. GE Aerospace, the maker of the 787 engines, has also largely withdrawn and postponed an investor conference, only adding to the tense situation.

But what are the current challenges for aviation? Faury clearly speaks of US tariffs on imports as one of the key issues affecting the global industry. Aviation has had duty-free trade since 1979, giving us an extensive, globalized network of specialist suppliers. But that could soon change, as Faury said that the industry would have to expect a 10 percent tariff burden, but was met with resistance and skepticism, and not just from him. The concerns are justified because international aviation production is heavily divided and tariffs could significantly harm the entire industry. Obtaining an exception for aviation is of great importance for those responsible in order to limit the consequences for global supply chains, which are already under pressure and should only be stabilized from 2027.

The importance of the Paris Air Show

Amid this tense situation, the Paris Air Show is also seen as a barometer for the industry. This year there could be up to 800 orders for commercial aircraft - and that makes the trade fair all the more exciting. During the first day of the trade fair there was already a record agreement between Airbus and the Indian airline IndiGo for 500 single-engine aircraft. Let's wait and see what the coming days bring! The experts describe the current market situation as the strongest in 35 years, which could mean that our domestic airlines can bring new impetus to their fleet planning.

But the geopolitical situation also plays a major role here. Qatar Airways recently picked up 160 long-haul aircraft from Boeing, a move that may be politically motivated. Interestingly, LOT Polish Airlines could also choose Airbus due to political considerations, while China is unlikely to place large orders during the trade fair in order not to burden trade negotiations. This shows that airlines may be operating with fleet planning that pursues not only economic but also political goals.

In conclusion, despite the challenges plaguing the industry, the Paris Air Show remains an excellent platform for the latest developments, contracting and technological innovations. As travelers take to the skies again, the industry must prepare for sustainable solutions and stabilization of supply chains in order to continue to be successful in the future. The next few days promise sensational announcements and records. Keep your ears open, because there could be a lot more to come!