Boeing-Airbus reap surprise $24b wide-body haul

Airbus chief operating officer for customers John Leahy poses with a mock of the Airbus350. Photo / AP

The Paris Air Show saw a surprise first-day surge in long-haul jet demand, with PT Garuda Indonesia, Saudi Arabian Airlines and Qatar Airways among buyers racking up wide-body deals valued at about $24 billion.

The purchases highlighted the buying power of airlines in emerging markets, where demand for travel is increasing faster than at more established carriers. Heading into the Paris expo, analysts had played down twin-aisle sales prospects for Boeing and Airbus Group.

Boeing amassed orders and commitments valued at almost $18 billion, including narrow-body jets, to top Airbus's $15 billion, according to data compiled by Bloomberg. That reversed the opening-day position at last year's Farnborough Air Show, which alternates with the Paris event.

Garuda signed up for 30 Airbus A350s and the same number of Boeing 787-9 Dreamliners together worth almost $17 billion, while Saudia, as the Arab carrier is known, placed the first order for a regional version of the Airbus A330. Qatar Airways bought 10 of Boeing's upgraded 777X plus four 777 freighters, valued at a combined $4.8 billion.

Garuda's Dreamliner deal has a list price of about $7.7 billion, while the A350 component is worth more than $9 billion. The Asian carrier also wants 30 single-aisle 737 Max 8 planes worth about $3.2 billion, with the deals all outline orders.

Watch: Airbus, Boeing announce $20bn in orders as Paris Air Show opens

Saudia's announcement covers 20 A330-300s valued at about $5 billion, plus 30 single-aisle A320s with current-generation engines. Qatar's 777-8X deal follows an earlier one for 50 -9X aircraft, while the 777 freighters will take the fleet to 12.

Customers typically get steep discounts on aircraft orders and don't pay full list prices.

Boeing also announced on Monday that Eva Airways of Taiwan intends to purchase five of the 777 cargo planes worth more than $1.5 billion at list prices.

The largest transaction this week could be for 100 Boeing Max jets for lessor AerCap Holdings NV, people familiar with the matter said. That would be valued at more than $10 billion, based on the $106.9 million price for the top-selling Max 8.

General Electric's leasing unit agreed to buy 60 A320neos, the updated version of the A320 featuring new engines. That deal has a list value of about $6.4 billion. Lessors are prized buyers because they place planes with multiple customers. GE Capital Aviation Services has previously bought both Maxes and A30neos, while AerCap has neos on its books but only older Boeing 737s. GE is the sole engine supplier on the Max.

Among the first leasing companies to place orders at the show was Air Lease, run by Steve Udvar-Hazy, which said it will buy one additional A350-900, as well as one of Airbus's current A321s and three A320s.

- Bloomberg