Aviation Leaders Gather Amid Supply Chain Woes and Climate Commitments

Aviation leaders are set to convene at the Farnborough Airshow, facing supply chain disruptions, aircraft delays, and challenges in reducing emissions. Expectations for large orders are low, but some deals may be finalized. Additional focus will be on addressing production issues and political turbulence affecting aerospace and defence sectors.

Aviation leaders will meet at a marquee summit outside London on Monday as the industry grapples with supply chain disruptions, aircraft delays, and stalled efforts to cut emissions. The Farnborough Airshow, running July 22-26, typically sees a flurry of orders from airlines, aircraft manufacturers, and weapons producers, but this year is expected to be different.

Sources indicate Airbus faces production challenges, while Boeing remains cautious amid its ongoing safety crisis. Nonetheless, deals like Virgin Atlantic's prospective Airbus A330neo orders and Flynas' interest in up to 30 widebody jets may still proceed.

Japan Airlines is likely to finalize tentative jet orders, and Boeing is seeing interest for its 737 MAX from leasing firms. Still, industry insiders expect second-quarter earnings to suffer due to rising costs and pricing pressures, potentially cooling demand.

The summit will likely shift focus to alleviating supply chain issues and expediting aircraft deliveries, as airlines strive to recover from the pandemic-induced collapse and subsequent surge in air travel demand. Boeing and Airbus executives have cited progress in ramping up production and addressing safety protocols.

Political factors are also in play, with defence companies closely monitoring shifts in Western democracies. Industry leaders will assess impacts from political volatility, including a British Labour government's defence review and upcoming U.S. elections. The airshow will feature sustainability panels, highlighting the sector's dual mandate to expand travel while cutting carbon emissions.

(With inputs from agencies.)