Boeing Dreamliner Crash, the military climbing combined the air show in Paris

Kelly Ortberg’s first Paris show of Paris as Boeing The CEO had to be relatively optimistic.

Under its leadership which began in August, the company made progress in the production of its successful production 737 Max Jets, increasing the deliveries of new aircraft generating species and indicates that it turns a corner of a series of manufacturing and safety attacks and years of land lost against Airbus. Shares increased by more than 13% this year, exceeding S&P 500.

But after an India air flight crashed on Thursday, marking the first fatal air disaster of a Boeing Dreamliner, Ortberg canceled its intention to go to the Massive Air Show which begins on Sunday.

The commercial event is a large draw for the industry and takes place every two years, alternating with the Farnborough Air Show in the Boeing, Airbus holidays and other aerospace giants, organize champagne celebrations, organize signaling ceremonies of flashy transactions with frames flanked by model plans and show their new plane with extreme maneuvers for spectators.

“While our industry is preparing to start the Air Paris show, Stephanie and I have both canceled plans to attend so that we can be with our team and focus on our client and the investigation,” Ortberg said in a note to employees on Thursday evening, referring to Boeing Commercial Airplanes PDG, Stephanie Pope.

Every 242 people except one on board 171 Air India flight were killed when the Boeing 787-8 Dreamliner over the age of 11, who went to London a suffocating day crushed in a medical dining room in medicine a few seconds after takeoff of Ahmedabad in the west of India. The only survivor was a British national born in India at the 11A seat.

The cause of the accident is unknown and will take weeks or months to determine. The questions focus on how the plane has lost the altitude so quickly and evenly, seeming to slide in a fireball accident. Cockpit voice and data recorders, called “black boxes”, will provide key information.

“It is important that we do not speculate on the accident and that we let the investigators do their job,” wrote Ortberg.

The manufacturer of aircraft engines, Ge aerospacesaid he would postpone a day of investors scheduled for Tuesday.

The accident is not the only external factor to change the rally in Paris.

Shortly before the start of the Paris Air Fair, Israel launched night missiles on Iran. A few hours later, Iran launched drones to Israeli territory. The airlines have canceled the flights, with jets in the diverting or returning to their destinations, while hundreds of others have bypassed airspace.

The growing tensions will make military budgets and will spend an even more important objective for the air show, but they also raise concerns about how conflicts and geopolitical tensions could have an impact on the demand for commercial air travel.

Despite the accident and other external concerns, Boeing, Airbus And Glowing should lock hundreds of plane orders. Waiting times for new popular aircraft models are already extending in the next decade with still strong demand.

Boeing has planned on Saturday that the world will need 43,600 commercial planes over the next two decades, emerging markets stimulating growth. It expects these markets to represent more than half of the world fleet in 2044, compared to 40% last year.

Some of the order signatures could come from previously unknown customers, although there are many new orders at stake, according to aviation analysts.

The current problems, such as the lack of trained workers, have delayed deliveries of new planes, while booming prices have raised concerns about planes and more expensive components.

The price has also been refreshed. A new Airbus A321neo went $ 65 million in late April, compared to $ 58 million at the start of 2023, while a new Boeing 737 Max 8 cost around $ 55.5 million in April, compared to $ 50.25 million at the start of 2023, according to Ishka and an aviation consulting company.

The planes being always in the short term, the rental rates also increase for the older planes of airlines who prefer not to make aircraft purchases of several million dollars in advance or which may need it for shorter periods. A 12 -year -old Boeing 737 costs $ 241,000 per month for rental at the end of April, up almost 42% compared to two years earlier, and an Airbus A320 of the same age was $ 239,000 per month, a gain of 50%, according to IBA Insight, another aviation data company.

The manufacturers planned by IBA based in the United Kingdom could see between 700 and 800 commands of commercial aircraft at the Paris show, a statement which includes firm orders, options and more loose commitments such as the letters of purchase and the understanding of understanding.

Customers could include Ethiopian airlines and a share of Polish carrier, as well as Vietnam Airlines, Airasia, Royal Air Maroc, Etihad and Saudi carrier Riyadh, said Ishka.

“A big China agreement is inevitable in time, for replacement if not growth reasons,” said Ishka in a note last week.

Air India, that Ishka had previously listed as a potential customer, should no longer buy new planes given last week’s tragedy.

Airplane customers become larger while international trips continue to bring money.

“Previously, these were orders to a single clanology,” said Richard Aboulafia, managing director of the aerospace consulting company Aerodynamic Advisory. Now, “everyone reserves these two -year orders for international traffic”.

He said that major international airlines like Turkish Airlines, Gulf carriers and others have developed in recent years, in competition for more world travelers, “cutting the pizza into small pieces”.

Since orders have placed years in advance, Aboulafia said that it does not expect a great impact on the request due to the accident, although some may be retained during the show.

“It is a terrible tragedy. It does not make anyone ‘life easier,” he said. “I don’t think, given what we know now, it has something to do with the design or construction of the plane. It certainly doesn’t look like that.”