Airbus and Boeing sign more than $100 billion worth of deals at the Farnborough Airshow

Following the summary of commercial aircraft deals announced by Airbus and Boeing at the opening day of the Farnborough Airshow on Monday in England, the two companies said they have so far signed deals worth more than $100 billion.

Planemakers racked up more than $20 billion of deals on the opening day of the Farnborough Airshow suggesting demand for new passenger jets remains in rude health despite worries over trade tensions and Brexit.

“This is a commitment for the future. We have got to be planning not just for next year, but we have got to be planning 10, 15, 20 years in the future. So many jobs and prosperity. But most importantly making sure the Royal Airforce has the right capabilities. That’s the reason why we are making this investment today,” said Gavin Williamson, UK Defence Minister.

The deal-making came as host Britain tried to convince a sceptical aerospace industry about its plans to leave the European Union, saying supply chains would continue to run smoothly and pledging money for a new fighter jet programme.

“Oil eats into the bottom line which is what might drive airlines to think about refreshing their fleets faster. We saw a lot of that happening and driving order activity a couple of years ago but then again the oil price right now is within a boundary where, at least from our view, it’s not going to drive outsized influences on ordering activities,“said John Schmidt, MD Global Aerospace and Defence, QAccenture.

Opening the event south west of London, British Prime Minister Theresa May sought to reassure aviation bosses that her under-fire Brexit plan won’t disrupt their supply chains.

“We will take back control of our borders, our laws and our money. But we will do so in a way that is good for business and good for our future prosperity,” she said.

Airbus, which employs around 15,000 people in Britain, warned earlier this month that if Britain left the EU without a deal, a so-called “hard” Brexit it could result in production at its factories stopping and aircraft being grounded.

At this year's Farnborough Airshow, it was a quiet airbus – Boeing battle: https://t.co/aYOULe3GfR pic.twitter.com/77l1cbdqd3

— The Points Guy (@thepointsguy) July 19, 2018

Also at the air show, Britain’s defence minister Gavin Williamson unveiled a model of a new fighter jet called “Tempest” that the country plans to build.

He announced 2 billion pounds ($2.7 billion) of funding for the project to 2025 and said he was looking for other countries to join, with a senior Royal Air Force official saying Sweden was the most likely partner.