Snapshot: Singapore Airshow

StarLux Airlines

23/02/2024 08:17

SINGAPORE, Feb 23 (Reuters) - Singapore this week held
its biennial air show - the first in six years unaffected by
pandemic restrictions - as the global aviation industry grapples
with a full rebound in travel demand in the face of severe
supply constraints.
    
    TOP STORIES
    *Singapore Airshow exhibitors and delegates said they were
optimistic about the aviation industry despite suppliers'
struggles to keep up with the rebound in travel demand. 
    *The air show included the foreign debuts of new weapons
systems, growing interest in systems that could destroy
ballistic missiles and swat down drones - but it was missing any
Russian presence and major defence deals were scarce.
    *Companies at the air show said parts shortages and delivery
delays plaguing the global aviation industry are easing, but
could take up to two years to resolve, adding potential
uncertainty to a post-pandemic recovery in travel demand.
    *Chinese state-owned planemaker COMAC upstaged industry
leaders Airbus  AIR.PA  and Boeing  BA.N , showing off its
self-developed C919 and ARJ21 jets as it pursues international
certifications and foreign orders.
     
    CIVIL AVIATION
    *Brunei-based airline startup GallopAir hopes to start
operations by the end of 2024 should Brunei's aviation regulator
approve the regional jet made by Chinese state-owned planemaker
COMAC it wants to fly in time.
    *Airbus faces delays in introducing an ultra-long-range
version of its A350-1000 jet designed for Qantas Airways'
 QAN.AX  non-stop Sydney-London flights because a regulator has
asked it to redesign an extra fuel tank.
    *Price increases for Rolls-Royce  RR.L  aircraft engines are
not impeding sales amid huge industry-wide demand for new
aircraft and engines.
    *Embraer  EMBR3.SA  is less affected than some other
companies by issues with RTX's  RTX.N  Pratt & Whitney engines
but not immune.
    *Boeing's CEO Dave Calhoun is the right person to lead the
company out of its latest safety crisis, after a panel blew out
of a 737 MAX 9 plane in flight last month, according to the head
of the world's biggest airline trade body.
    *Philippine budget airline Cebu Pacific  CEB.PS  will decide
in May or June whether to choose Airbus or Boeing for an order
of more than 100 narrowbody aircraft flagged last year.
    
  
    DEFENCE
    *The use of anti-ship ballistic missiles (ASBMs) in the Red
Sea has spurred interest in Asia about the systems used to shoot
them down - although China, with its huge ASBM arsenal, presents
a tougher challenge.
    *Russia's absence from the show, as its companies struggle
with sanctions and the demands of sustaining the invasion of
Ukraine, showed an opportunity for rivals to step in with some
Asian customers, attendees said.
    *China's AVIC displayed its Z-10 attack helicopter for the
first time outside its home country at the show - the only
non-Western design on display.
    *Israel's defence industry was out in force this week,
making its return after being largely absent from the Dubai air
show in November in the wake of the Israel-Hamas war, a subject
that was off limits at the Asia summit.
    
  
    ENVIRONMENT
    *Despite the public-facing united front, the air show
exposed deep divides over how the industry can achieve its goal
of "net zero" carbon emissions by 2050.
    *Travellers will need to bear the cost of the transition
towards green jet fuel, Singapore's transport minister said as
he announced the city state's plans for a levy on flight ticket
prices as the aviation industry seeks a viable funding model.
    *Demand for sustainable aviation fuel (SAF) should see a
long-sought boost after regional airline hub Singapore said it
would require SAF on flights from 2026, but high costs and
uncertain raw material supply will mean barriers to wider
adoption remain.
      
    ORDERS
    *China's Tibet Airlines finalised an order for 40 C919 and
10 ARJ21 jets from COMAC designed to be suitable for
high-altitude plateaus, becoming the launch customer for a new
variant the Chinese state-owned planemaker is developing.
    *Vietnamese budget carrier VietJet  VJC.HM  agreed a
provisional deal to order 20 A330neo wide-body airliners from
Airbus as the airline grows its long-haul route network.
    *Taiwan's Starlux Airlines  2646.TWO  placed an order for
five Airbus A350 freighters and three A330neo widebody passenger
jets.
    *Royal Brunei Airlines placed a firm order for four Boeing
787-9 Dreamliner planes for delivery from the second half of
2028.

 (Compiled by Jamie Freed. Edited by Gerry Doyle)
 ((Jamie.Freed@thomsonreuters.com;))