REUTERS/Pascal Rossignol See Also Patrick Dempsey gets emotional after a good finish at legendary French car race Boeing’s Dreamliner just did a great impression of a fighter jet for the Paris Air Show The 15 Best Used Cars For First-Time Drivers Airbus and Boeing are expected sell more than 200 aircraft this week at the 2015 Paris Air Show. Indonesia’s Garuda has ordered 60 Boeing 787-9 Dreamliner and 737Max jets valued at $11 billion and 30 Airbus A350XWB jets worth as much as $11 billion.
Airbus and Boeing are expected sell more than 200 aircraft this week at the 2015 Paris Air Show.
Indonesia’s Garuda has ordered 60 Boeing 787-9 Dreamliner and 737Max jets valued at $11 billion and 30 Airbus A350XWB jets worth as much as $11 billion.
In addition, Saudi Arabia’s national airline Saudia order 50 Airbus A330 Regional and A320neo jets valued at $7.7 billion.
GE’s aviation leasing service has placed orders for 60 Airbus A320neo worth up to $6.4 billion.
While Qatar Airways has ordered 14 Boeing 777 widebody jets valued at $4.8 billion.
In fact, the two plane makers are expecting to book sales of as much as $23 billion just in narrow-body A320 and 737 airliners alone, Bloomberg reported.
But as impressive as these figures may be, sales are not expected to surpass that of the black Friday free-for-all of the last Paris Air Show.
In 2013, airlines and leasing companies ordered more than $170 billion in new airplanes over the week-long show. It took just three days for the tally to roll past the $100 billion mark.
According to Reuters, Boeing and Airbus — alone — sold a mind-blowing 908 aircraft that week with a combined sticker value of $135 billion.
That’s billion with a “b.”
Sure, airlines often negotiate extensive discounts off the sticker price. But still, even at half price, that’s an impressive take.
Much of 2013′s monstrous sales were as a result of massive of orders for Airbus’ next generation A320neo and A350XWB jets along with Boeing’s new 737max and 787 Dreamliners — pretty much the same planes being sold at the 2015 show.
So why have sales slowed?
The biggest difference between now and then is that companies like Airbus and Boeing have built up an enormous backlog of orders.
“Airplane makers have been selling twice as many planes as they can build,” Deloitte vice chairman and head of US Aerospace & Defense Tom Captain told Business Insider in an interview.
According to Captain, airplane manufacturers have a record 2888 planes on order with a production backlog of 9 years. That means airlines and leasing companies won’t be able to take delivery of some of their ordered aircraft for nearly a decade.
This delay may be dissuading some buyers from making purchases until these backlogs start to clear up.
Last year, Delta Airlines placed a $14 billion order for 50 Airbus widebody jets. According to Reuters, one reason the Atlanta-based carrier decided against the Boeing Dreamliner is due to the lack of production slots available for the hot selling jet.
And Airbus’s ability to deliver the planes in a shorter time frame seemed to have tipped the balance towards the European plane maker.
However, airplane manufacturers are working to reverse this trend by ramping up the rate of production. According to Captain, plane makers increased the rate of deliveries 18% between 2011-2014.
Airbus has opened new production facilities in China and in Mobile, Alabama. While Boeing has established a new assembly plant in South Carolina for its Dreamliner.
Article originally posted in Business Insider website.