Boeing wins $13.5bn MAX jets deal as Farnborough opens

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Farnborough, United Kingdom: US aerospace giant Boeing on Monday fired the first shot in an orders battle with European rival Airbus at Farnborough airshow, clinching a $13.5-billion deal for 100 MAX planes from Delta Airlines in a huge vote of confidence for the crisis-hit jet.
The deal marks a huge turnaround for the MAX jet which had suffered two deadly crashes in 2018 and 2019.
Outgoing British Prime Minister Boris Johnson meanwhile opened the prestigious five-day event as the aviation sector plots its recovery from heavy COVID-19 fallout.
US carrier Delta lodged its first ever order for medium-haul MAX aircraft, with options for 30 more of the fuel-efficient planes as it seeks to replace its aging fleet and cut damaging emissions.
Boeing revealed also that Japanese airline ANA had agreed to purchase 20 of its smaller MAX 8 jets — worth $2.4 billion — plus two 777-8 freight planes.
“The Boeing 737-10 will be an important addition to Delta’s fleet as we shape a more sustainable future for air travel, with an elevated customer experience, improved fuel efficiency, and best-in-class performance,” said Delta chief executive Ed Bastian.
The news comes as airlines worldwide seek to replace aging fleets with fuel-efficient planes that emit less carbon dioxide.
The first visitors to Farnborough, southwest of London, were meanwhile hit by scorching temperatures amid Europe’s ongoing heatwave.
Defense aerospace companies are also expected to emerge as big winners, with Russia’s invasion of Ukraine boosting spending on nations’ armed forces.
Russian companies have been banned from Farnborough due to the war.
The event coincides with fast-moving political turmoil in Britain after Johnson’s recent announcement that he is stepping down as Conservative party leader, sparking a fractious contest to replace him also as prime minister.
“This government believes in aviation and its power to bring jobs and growth to the entire country,” Johnson said Monday as the event opened.
“After three years in the cockpit... I am now handing over the controls seamlessly to someone else. I don’t know who,” he added, sparking laughter from delegates.
Johnson also said that the government was “investing massively in defense.”
This year’s event — one of the world’s largest civilian and defense shows — is the first global aviation get-together since the Paris airshow in 2019, before COVID-19 hit.
Farnborough was canceled in 2020 as the Covid health crisis grounded aircraft and ravaged the sector.
Global air traffic is gradually recovering and in May reached more than two-thirds of its pre-pandemic level, according to the International Air Transport Association.
That recovery has however faced headwinds from rocketing inflation fueled by historically high energy prices and higher wages, while staff shortages constrain airports and spark flight cancelations.