Airbus Orders at Paris Airshow

By Giulia Segreti, Paul Sandle and Tim Hepher
PARIS (Reuters) – Airbus secured multibillion-dollar plane orders from Saudi Arabia and Poland on the opening day of the Paris Airshow, which was overshadowed by a diplomatic dispute regarding France’s decision to shut down Israeli stands displaying weapons.

Delegates anticipate a less vibrant event this year, influenced by the recent Air India Boeing 787 crash and significant deals made by Boeing during a tour by U.S. President Trump in the Middle East.

Airbus, however, is set to finalize several sales on its home turf. Growing military interest is notable as Europe enhances defense spending amid escalating conflicts between Israel and Iran.

Tensions between long-time allies France and Israel escalated during the show when France ordered the closure of Israeli stands for refusing to remove displays of attack weapons. Israel’s Ministry of Defence condemned this decision, labeling it “outrageous and unprecedented.”

U.S. Republican Governor Sarah Huckabee Sanders remarked on the situation, calling it “pretty absurd,” while show organizers sought a resolution. France’s Prime Minister Francois Bayrou explained that the ban on weapon displays aligned with France’s diplomatic stance and concern over Gaza.

Saudi Ambitions and Polish Plans

Boeing’s CEO and Commercial Airplanes leader canceled their attendance, focusing on the investigation of last week’s Air India crash that claimed over 240 lives, the first fatal incident involving the 787 model. Meanwhile, Airbus was engaged with numerous deals.

Saudi leasing company AviLease announced an order for 30 Airbus A320neo jets and 10 A350 freighters valued at approximately $3.5 billion. Additionally, Riyadh Air signed for 25 A350-1000 long-haul jets, amounting to an estimated $4.6 billion, as Saudi Arabia seeks to establish itself as a regional aviation hub.

Polish national airline LOT confirmed an order for 40 Airbus A220s, with options for 44 more, valued around $1.6 billion. This deal reflects a shift in Poland’s relations with France amid security commitments from the U.S. The event featured attention towards European defense cooperation with a treaty signed in May between France and Poland.

In other updates, Japanese airline ANA finalized a deal with Airbus, and Egyptair is close to ordering six additional A350s. Taiwanese carrier Starlux is also nearing an order for more A350 planes.

While U.S. arms firms showcased their products, European competitors are deliberating on adapting to increased military spending, although major announcements were sparse. Agency Partners analyst Sash Tusa highlighted a noticeable influx of new investors into the aerospace and defense sector this year, raising expectations for defense-related news.