Higher oil prices to spur orders for smaller, fuel efficient jets at Farnborough Airshow
Paris — Global aircraft makers could reap 900 orders and commitments at next week’s Farnborough Airshow, down only slightly from last year’s comparable event, as strong oil prices prompt airlines to add to their bulging order books, aviation consultancy IBA Group said. Several industry analysts are predicting a quieter summer air show this year as the industry digests a record order backlog of more than 15,000 aircraft, spread across all types. But higher oil prices could prompt several airlines and lessors to top up orders for fuel-efficient narrowbody models using the cash from industry restructuring, said IBA, one of a handful of companies which also carry out aircraft valuations. "Airlines have historically placed orders when times are good and cash is strong, much like today," Stuart Hatcher, chief operating officer of UK-based IBA Group, said in a report. It is the first detailed order forecast ahead of the July 16-22 event, held every other year in alternation with Paris. On ...
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