Indeed, it has been quite some time. This week, however, a normally quiet airfield in Hampshire will once again host the most prominent names in the global aerospace and defense industries.
The Farnborough Airshow, which is being held for the first time in four years, is anticipated to feature more than 120,000 attendees and 1,200 exhibitors from 42 countries.
During the flying displays, the Red Arrows, South Korea’s Black Eagles Display Team, an RAF Typhoon, and a US Air Force F-35 will all make appearances.
Since the last show in 2018, the Covid pandemic has had a significant impact on commercial aviation, while the conflict in Ukraine has drastically altered the defense industry’s outlook.
This implies that this year’s event provides an opportunity to monitor business sentiment and evaluate how they are adapting to a drastically altered environment.
However, certain things have not altered.
The drive to reduce emissions and become less harmful to the environment is as intense as ever, and “sustainability” will undoubtedly be one of the most popular phrases in the large exhibition halls and sumptuous chalets.
Evaluation of faith
Typically, Farnborough and the Salon du Bourget in Paris rotate as the most prestigious aerospace industry event of the year.
It is a location where CEOs in crisp suits and military personnel in gold braid and dark glasses interact in the shadow of billions of pounds worth of cutting-edge equipment.
Before Covid, it was utilized as a platform for ostentatious display, to boast of enormous new orders. The airline industry was expanding fast, and all projections indicated this trend would continue.
But the outbreak unexpectedly put an end to the good times. In several places, airlines barely flew. Aircraft were grounded, and production slowed in factories.
Now that a visible recovery is underway, those behind the program are certain that confidence is returning.
Kevin Craven, chief executive officer of the UK aerospace trade organization ADS, notes, “The globe has not flown much in the past three years.
“Therefore, the evidence that the industry has utilized the present properly and is eagerly anticipating the future is, in my opinion, a very symbolic occasion.”
Inevitably, the spotlight will be on Airbus and Boeing, the two titans of the commercial sector. The US manufacturer has experienced the most difficulty during the past few years.
The corporation will bring its 737 Max 10 to the exhibition. This is the most recent and largest variant of the 737 Max, which was involved in two catastrophic crashes in Ethiopia and Indonesia.
Boeing hopes that the plane, a highly efficient long-range variant, will allow it to compete with Airbus’ A321neo and aid in the rebranding of the Max name.
However, difficulties are imminent. It appears improbable that regulators will certify the aircraft before the end of the year. If not, new safety regulations governing cockpit alarms will apply.
These would need Boeing to modify the flight deck, necessitating additional training for pilots coming from other models of the 737 Max. This would increase expenses for airlines and make the jet possibly less desirable.
The company has requested an exemption from the new regulations, and CEO Dave Calhoun has warned that if this is not granted, the initiative could be canceled.
In addition, the aerospace firm has not yet resumed the delivery of its 787 Dreamliner. The manufacture of these has been halted for more than a year due to several production and quality control issues, while regulatory approval is imminent.
Boeing and Dave Calhoun need a robust order book to restore investor confidence and pacify unhappy investors.
Airbus, meanwhile, is optimistic about the exhibition.
The business predicted earlier this month that passenger air traffic demand would expand by 3.6% annually over the next two decades and that the drive to cut emissions would raise the need for fuel-efficient aircraft.
It believes that its fleet, which includes aircraft such as the A320neo, A350, and A321XLR, will be well-positioned to profit.
Popular topic
While CEOs swelter in a forecasted heatwave that is distinctly un-British, reducing carbon emissions will certainly be one of the most prevalent subjects of discourse.
John Coykendall, leader of Deloitte’s U.S. and global aerospace and defense practice, adds, “In some respects, Covid brought the challenge of decarbonization to the forefront, as there was a period with nearly no flights and, thus, no emissions.”
“Suddenly, when travel returns with a vengeance, so do the emissions linked with it.
“The industry has made a significant commitment to attain net zero by 2050, and I believe there will be a great deal of discussion at the show on how to achieve that objective.”
Sustainable aviation fuels, electrification, and long-term ambitions for a new generation of hydrogen-powered aircraft are likely to dominate such debates.
Several firms, including the British startup Vertical Aerospace, the German company Lilium Aerospace, and the California-based company Joby Aviation, will discuss their ambitions for electric air taxis.
Ukraine effect
Similarly, in the defense industry, change is in the air. The crisis in Ukraine has challenged preexisting assumptions and prompted many nations to increase their national defense budgets.
John Coykendall of Deloitte adds, “Before the Ukraine issue, we have already seen a shift from counterinsurgency capabilities to a lot greater emphasis on near-peer opponents and the skills you require in those circumstances.”
“Add to that a large increase in spending from NATO nations in particular… I believe there will be a great deal of dialogue between government military representatives and the many defense contractors that will be present at the expo, examining equipment and discussing potential transactions.”
And ultimately, billion-dollar or perhaps tens-of-billion-dollar transactions are what Farnborough is all about.
