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AIRBUS SE and Boeing Co. are rounding out the year with a flurry of major orders, smashing records in one of the most active purchasing periods in recent memory that stretches their production lines well into the next decade.
On Tuesday, Deutsche Lufthansa AG said it ordered as many as 200 short-haul aircraft from the two manufacturers, in a deal the German carrier valued at about US$9 billion. The same day, EasyJet Plc shareholders signed off on a 157-plane order for Airbus aircraft that it had announced a few months ago.
Orders exceeding 100 aircraft, once a rare occurrence in the industry, have become increasingly commonplace this year as delivery slots become scarce. Airbus and Boeing are now practically sold out for the rest of the decade on their most popular models, raising pressure on carriers to join the frenzy or risk being relegated to the end of an increasingly long line.
“It seems like after three years of not having spent too much, the flood gates are open again,” said Tobias Fromme, a research associate at Bernstein. “All the airlines had a super strong year. Yields have been fantastic; demand has stayed strong until 2024. It’s looking pretty good generally.”
As it stands now, Airbus has pulled in gross orders for more than 2,000 aircraft this year, comfortably breaking a record it had previously set it in 2014 when it sold almost 1,800 planes. Boeing’s order book stands at about 1,200 aircraft.
The purchases from Lufthansa and EasyJet follow a record order placed by Turkish Airlines last week for as many as 355 Airbus jets and a deal for 140 Airbus and Boeing planes from jet lessor Avolon Holdings a few days earlier. Both manufacturers are still trying to close out some large agreements before the year-end, according to people familiar with the matter.
While much of the action has been at the short-haul end of smaller aircraft, which form the backbone of the industry, the rush has also started taking hold in the market for larger widebody jets. Boeing walked away with major commitments at the recent Dubai Air Show, where local champion Emirates replenished its longhaul fleet.
Lufthansa said it will use the A220s for its new City Airlines subsidiary while it will decide later on which group subsidiary will operate the Max. The airline also reserved additional purchasing options for 40 aircraft from the Airbus A320 family and has options for another 20 of the smaller A220. [bloomberg/photo special]
