Reuters reports that aerospace and defence companies will be aiming to tackle urgent supply bottlenecks at this week’s Paris Airshow, as they grapple with operating in a “war economy”.
The world’s largest aviation trade show, which alternates with Farnborough in the UK, is eagerly anticipated as airlines rush for capacity to meet demand; some forecasts predict as many as 2,000 new orders.
India’s IndiGo (INGL.NS) is set to place a record order for 500 Airbus (AIR.PA) narrowbodies, first reported by Reuters, hard on the heels of a 470-plane Airbus and Boeing (BA.N) order from Air India, which may also be formalised in Paris.
“There were about 3,300 aircraft that simply were not produced during the COVID years … and that’s about 15% of the global fleet,” Andy Cronin, CEO of leasing firm Avolon told Reuters.
Despite it being a “sellers market”, Reuters says there are pressing questions over the industry’s ability to deliver on orders after the pandemic left the “industry’s supply chain in tatters”. In addition, the Ukraine conflict has put pressure on Europe’s fragmented arms industry to be more nimble and hold more stocks.
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