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07-11-2016, 05:03 AM
FARNBOROUGH, United Kingdom: The Farnborough air show opens on Monday in the face of turbulence from Britain’s shock decision to exit the European Union.
The event held every two years southwest of London traditionally features a battle between US titan Boeing and Europe’s Airbus for supremacy on the order books.
Organisers k**w there is little chance to beat the record $201 billion of business -- both firm airplane orders and commitments -- clinched in 2014, with the industry beset by major production backlogs.
Ahead of the meeting, some airlines have posted profit warnings linked to expected fallout from Brexit.
Britain’s referendum to quit the 28-nation European Union has cast a shadow over the air show that runs from Monday until Sunday.
The vote sent financial markets tanking and sparked worries about global eco**mic fallout that could weigh on demand for airline travel.
Brexit “is likely to have an impact over the medium term” on demand for new planes, independent aviation analyst John Strickland warned.
“Order books are currently full but if demand softens then ultimately this could lead to reduced orders or possibly some cancellations,” he told AFP.
However, Argon Consulting analyst Jean-Louis Dropsy forecast Brexit would **t affect the sector, arguing it relies more on keen demand from outside Europe -- and particularly from emerging markets.
“Brexit should have ** impact on the global industry, which is driven mainly by air traffic growth, mainly in Asia, India and the Middle East,” he said.
Removal from the single European airspace could however lead to airlines passing on higher taxes to passengers, in turn curtailing demand for aircraft in the long run.
Since the June 23 referendum result, British Airways owner IAG and British **-frills airline EasyJet have issued profit warnings.
And while incidents such as the recent EgyptAir plane crash and the terrorist attacks on Brussels and Istanbul airports have also taken their toll on the sector, ultra-low oil prices have slashed fuel costs for airlines.
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The event held every two years southwest of London traditionally features a battle between US titan Boeing and Europe’s Airbus for supremacy on the order books.
Organisers k**w there is little chance to beat the record $201 billion of business -- both firm airplane orders and commitments -- clinched in 2014, with the industry beset by major production backlogs.
Ahead of the meeting, some airlines have posted profit warnings linked to expected fallout from Brexit.
Britain’s referendum to quit the 28-nation European Union has cast a shadow over the air show that runs from Monday until Sunday.
The vote sent financial markets tanking and sparked worries about global eco**mic fallout that could weigh on demand for airline travel.
Brexit “is likely to have an impact over the medium term” on demand for new planes, independent aviation analyst John Strickland warned.
“Order books are currently full but if demand softens then ultimately this could lead to reduced orders or possibly some cancellations,” he told AFP.
However, Argon Consulting analyst Jean-Louis Dropsy forecast Brexit would **t affect the sector, arguing it relies more on keen demand from outside Europe -- and particularly from emerging markets.
“Brexit should have ** impact on the global industry, which is driven mainly by air traffic growth, mainly in Asia, India and the Middle East,” he said.
Removal from the single European airspace could however lead to airlines passing on higher taxes to passengers, in turn curtailing demand for aircraft in the long run.
Since the June 23 referendum result, British Airways owner IAG and British **-frills airline EasyJet have issued profit warnings.
And while incidents such as the recent EgyptAir plane crash and the terrorist attacks on Brussels and Istanbul airports have also taken their toll on the sector, ultra-low oil prices have slashed fuel costs for airlines.
http://feeds.feedburner.com/~r/World-TheNewsInternational/~4/RzG45KT67gQ
أكثر... (http://feedproxy.google.com/~r/World-TheNewsInternational/~3/RzG45KT67gQ/133955-Farnborough-air-show-flies-into-Brexit-storm)