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Mon, Jul 09, 2012

Farnborough Opens With High Expectations For Boeing And Airbus

Boeing Hopes 737 Max Takes Off

The Boeing vs Airbus rivalry will be one of many story lines getting a lot of attention this week as the aviation world gathers at Farnborough. The Wall Street Journal reports that the first salvo may be fired by Boeing which is expected to announce orders for its 737 MAX. The WSJ cites sources close to the plane maker who say that both General Electric Company’s aircraft-lease division and Air Lease Corporation are expected to announce big orders for the 737.

United Continental Holdings could confirm their expected order for 100 of the Boeing aircraft and options for an additional 100, while Kuwait-based Aviation Lease and Finance is also expected to show up on the 737 Max order books.

The 737 Max is Boeing’s move to update its single aisle model yet again to remain competitive with the Airbus A320 , most recently updated as the A320neo. So far the A320neo has garnered more than 1,400 orders while the 737 Max has received less than 500.

Airbus enters Farnborough hot off its announcement of plans to build a new facility in Mobile, Alabama and the WSJ says the plane maker could announce deals this week that will double its orders to date for this year.

The bad news for Boeing could come in the form of an order for A320 family aircraft from Arkia Israel Airlines, Ltd. If confirmed such an order would break a long held Boeing lock on the Israeli passenger jet market.

Meanwhile, Reuters reports that  Sikorsky and the U.S. have signed a 5-year, $7.3 billon dollar deal to supply the US Army, Navy and Marines with more H-60 Black Hawk helicopters and other versions of the utility helo. The procurement deal runs through 2016.

FMI: www.farnborough.com/airshow-2012

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