Airbus clinches US$17b in orders as Franco-Israeli dispute erupts at Paris Air Show
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The news: Airbus has bagged two orders worth a combined USD17 billion ($26.08 billion) on day one of the Paris Air Show, which saw rival Boeing scale back its activity after a fatal Air India crash involving one of its jets.
The numbers: Saudi Arabia’s AviLease placed an order for 77 freighter and passenger aircraft, followed by an order by Riyadh Air for as many as 50 Airbus A350-1000 widebody jets – another Saudi lessor.
AviLease, which is backed by the Saudi sovereign wealth fund, ordered 30 Airbus A321 single-aisle jets, with options for 25 more, in addition to 10 A350 freighters with options for 12 more. The order could reportedly approach USD8 billion in value.
The context: The orders come a month after US President’s Donald Trump’s tour of the Gulf states, during which Saudi Arabia’s Public Investment Fund-backed leasing firm’s purchase of 30 Boeing 737 jets.
The deals were overshadowed at the Paris Air Show by a diplomatic dispute which erupted over France’s call to shut down four Israeli stand which were displaying weapons.
France, the conference hosts, shut down the stand for Elbit Systems, Rafael, IAI and Uvision, after they refused to remove weapons from display. A French government source told AFP that the booths were showing “offensive weapons” that could be used in Gaza, in violation of agreements with Israeli authorities. Israel has condemned the “outrageous and unprecedented decision” which “reeks of policy-driven and commercial considerations.”
France has increasingly toughened its position on Israel’s government led by Prime Minister Benjamin Netanyahu, with Emmanuel Macron last week making a distinction between Israel’s right to protect itself, which he said France supports and could take part in, and strikes on Iran it did not recommend.
