Back in the swing

Hectic Paris Air Show reflects aviation revival

The slew of activity at last month's Paris Air Show seems to indicate a recovery of the aviation business is in full swing. Not only did a record Paris Air Show crowd of about 480,000 visitors attend the week-long event, but the total number of large commercial jetliners involved in announcements for firm orders or purchase intentions was more than six times the number from the last Paris event, in 2003.

According to the French publication Les Echos, Airbus announced agreements that totaled 280 orders and intentions to purchase. Similar agreements for Boeing, which does not save purchase agreements to disclose at air shows, called for 148 airplanes.

"People see that there is demand for aircraft globally, and that will drive Airbus, Boeing and their suppliers," William Alderman, head of aerospace investment and advisory firm Alderman & Co., said in a Dow Jones news service report.

Among the customers placing jetliner orders were leasing companies International Lease Finance Corp. and GE Commercial Aviation Service. Analysts consider lessor deals key industry indicators because these companies maintain large fleets and are closely in tune with what airlines will need. According to Dow Jones, Banc of America Securities aerospace and defense analyst Nick Fothergill wrote in a research note: "Lessors have been absent for four years, and we believe their reappearance is a significant cyclical indicator."

The global airline segment that was most active at Paris was the Indian segment.

Jet Airways ordered a total of 30 planes, including 10 Boeing 777s and 10 737s. New airline Kingfisher Airlines ordered 15 aircraft, including five Airbus A380 superjumbos. And new Indian low-cost airline IndiGo ordered 100 A320s.These disclosures follow other purchase announcements made this year by Indian airlines. SpiceJet in February ordered up to 20 737-800s. And in April, Air India said it intended to purchase five 777-200LR, 10 777-300ER and 20 787-8 airplanes.