Farnborough show business hits $37bn
MORE THAN $37bn (£24bn) in business has been agreed during the first three days of the Farnborough trade show with military spending news overshadowed by a raft of commercial aviation deals.
Organisers of the show said yesterday that $37.5bn in new deals had already been signed by the midweek point.
“We’ve seen buoyant activity in all areas of the aerospace, defence and security areas. After a slow down in sales across all sectors in recent years, it is really encouraging to see confidence returning to the market,” said Amanda Stainer, director of exhibitions and events at the show.
Royal Bank of Scotland (RBS) kicked off yesterday’s flurry of deal activity after agreeing to a £5bn order for 52 aircraft from Airbus and 43 from Boeing.
News of the deal overshadowed comments made on Tuesday by government figures, including defence secretary Liam Fox, that military spending would be cut unless the industry delivered better value for money to taxpayers.
The defence segment of the show was also hit with the news earlier in the week that Italy cancelled an order for 25 fighter jets.
EADS North America boss Sean O’Keefe said yesterday, despite the gloomy news, that
the group was looking to invest in a variety of military services companies.
Meanwhile, a raft of deals took off yesterday signalling a return to confidence in the commercial aviation sector. Airbus signed deals with Germania, Garuda Indonesia, Thai Airways and Kuwait based Aviation Lease and Finance Company.
Boeing signed deals with Air Austral, Okay Airways, Qatar Airways and American Airlines.