Since 1909, the Paris Air Show has been held every odd year in France. The semi-annual event is a chance for leading aerospace companies to show off their latest technology and book orders to their all-important backlogs. This year’s 50th anniversary paid off hugely for several companies who saw huge bookings. Here is a look at the three companies that may have won big time at the event.
Boeing and Airbus Compete for Domination
Two huge aerospace giants stood tall at the Paris Air Show. Airbus, owned by European Aeronautic Defence and Space Company (NASDAQOTH:EADSY), and The Boeing Company (NYSE:BA) were the two biggest winners from the semi-annual event.
Airbus is also set to launch the A350-900, which will compete with Boeing’s 787-10. The wide-body plane saw new orders from Singapore Airlines and Air Lease Corp (NYSE:AL). The A320 single aisle pulled in an incredible 371 orders during the week’s event. The company now has over 2,400 orders for the A320, which was a big seller at the last Paris Air Show in 2011. In fact, Airbus claims they have a 61% market share in the re-engined single aisle market.
The Boeing Company (NYSE:BA) launched their new 787-10 Dreamliner at the Paris Air Show. The newest plane received 102 orders from five different companies. Deals were signed with key players Singapore Airlines, United Airlines, British Airways, GE Capital Aviation, and Air Lease Corp (NYSE:AL). The new plane seats 300 to 330 people. The plane will be delivered in 2018 to the first customers.
Through a joint venture with Bell Helicopters, The Boeing Company (NYSE:BA) also saw a new $6.5 billion contract for 99 units, and the contract also carries a provision for an additional 23 units. Boeing also picked up a key sales agreement at the Paris Air Show. Boeing will be selling the KC-390 military transport on behalf of Embraer SA (ADR) (NYSE:ERJ). Boeing will lead sales in the United States, United Kingdom, and Middle East. Boeing could also see a bigger contract as it is hoping this contract leads to Embraer picking the company to sell its popular F-18 in Brazil.
Despite losing out in the competition with Airbus, The Boeing Company (NYSE:BA) did see some customers pick the aerospace giant as their preference. Ryanair Holdings plc (ADR) (NASDAQ:RYAAY) bought 175 Boeing 787-800s and cited the capacity as a big reason for the order. The Boeing jet offers 189 seats, versus 180 in the comparative Airbus plane.
At the end of the Paris Auto Show, both companies reported huge order totals. Airbus ended with new commitments of $68.7 billion. Airbus has now booked 758 jets for the year of 2013. This impressive number, reached in June, is up against a company target of 800 for the year. Boeing, on the other hand, lost the orders race with a total of $66 billion in commitments. The Boeing Company (NYSE:BA) added 442 plane orders at Paris and now has a total of 692 commitments from the 2013 year.
Pratt & Whitney Powering United Technologies
Pratt & Whitney, a unit of United Technologies Corporation (NYSE:UTX), had an excellent showing at the Paris Air Show. The company scored several large orders, including 200 engine order from International Lease Finance to power Embraer E-Jets, 100 engine agreement from Norwegian Air Shuttle for Airbus A320 aircraft, and 60 engine order from Air Lease Corporation for A320 and A321 Airbus planes.
At the end of the Paris Air Show, Pratt & Whitney had 4,500 total orders and commitments. This strong backlog is helping to power the United Technology business unit that set lofty goals in 2010. Back in 2010, with $12.2 billion in revenue, the company announced it would double revenue to $24 billion by 2020.