The order could boost economies growth which is stalling in the wake of Brexit.
Despite political uncertainties overshadowing the Farnborough Airshow, Airbus has beaten rival Boeing to bag a big order for 8 to 10 of its biggest twin-engined models. The order is worth at least $3 billion at list prices.
David Cameron is set to attend the airshow’s opening day where he is expected to finalise a multi-billion dollar deal with Boeing for 9 P-8A Poseidon maritime patrol planes. This deal will also include the upgradation of 50 Apache helicopters.
According to industry sources, Airbus’s A350-1000 deal with Virgin Atlantic is likely to act as a shot in the arm since its sales have slowed as Boeing is in the process of developing a bigger version of the 777, which has prompted leapfrogging game between the two long-haul jet manufacturers.
When asked to respond to requests for comments, while Virgin Atlantic was not available for comment, Airbus declined to comment.
Supported by rising air travel, especially in Asia and in the Middle-East, both airplane manufacturers are enjoying strong demands. At the end of 2015, they have a combined backorder of 13,500 planes. This equates to nearly 9.6 years of production at current rates. However, industry analysts are worried that slowing growth rates in China and Brexit could weigh down on the industry which could result in the drying up or even cancelling of some orders.
More expensive and larger airplanes are said to be more at risk.
According to industry sources, Virgin Atlantic which has since long deferred its order of 6 Airbus A380 super jumbo jets, could cancel its order.
As per Ray Conner, who heads Boeing’s Commercial Airplanes, the pace for orders for wide-bodied jets has significantly reduced, resulting in the company being more vigilant about matching supply with demand.
However, according to industry sources, Germania, a privately held German airlines, is close to placing an order for 25 A320 family jets, worth $2.5 billion. If this becomes a reality, it would be yet another disappointment to Boeing, which is trying hard to stem the flow of leaving customers and thus losing market share.
Officials from Germania could not be immediately reached for comment.
A spokesman for Airbus said, “We do not comment on confidential talks which may or may not be happening with our customers.”
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