Airbus confirms drop in air show orders

[Slats7]

Business Feed Article | Business | guardian.co.uk

European planemaker Airbus wrapped up the Paris air show with $6.4 billion of orders for 58 aircraft, marking as expected a steep fall from last year as airlines hold back from renewing fleets to stave off recession.

It's a decent drop but $6.4 billion is still a lot of money!

 

[codash1099]

Do the airlines assume that the market will not recover for more than 5 years? Orders placed now probably wouldn't be delivered before then (assuming no negotiation for earlier delivery slots freed up by cancellation of existing orders).

With large numbers of older planes being retired, predominantly because of the downturn, it's possible there will be a scramble for capacity in 2015.

 

[simongr]

With large numbers of older planes being retired, predominantly because of the downturn, it's possible there will be a scramble for capacity in 2015.

And a commensurate increase in prices...