Farnborough Airshow 2012 — Why Farnborough Is Still Important — UK Business News – CNBC
Several weeks ago, as the Farnborough Airshow approached, some in the aerospace industry again questioned the relevancy of the 64-year-old aerospace and defense tradeshow.
In an increasingly global industry, profoundly transformed over the past quarter century, new venues such as Singapore, Dubai and Bangalore have grown in importance given the significance of their regional market opportunities and potential partnerships.
In spite of these developments Farnborough is not an anachronism and it remains a premier venue to take the industry’s pulse and assess its global health ahead of what promises to be a very challenging production surge for commercial aircraft suppliers and a contraction for most U.S. and EU defense prime contractors.
Commercial aerospace has been a beacon in an otherwise depressed global economy still struggling to return to growth following the financial crisis. While the U.S. and Europe appear to have again stalled for myriad reasons, it is evident that continuing policy errors in Washington, Brussels, Paris or Athens could negatively impact air travel, jeopardizing sales of commercial, business or general aviation aircraft.
The commercial air transport production surge will be the primary topic at this year’s Farnborough airshow. Concerns remain and original equipment manufacturers, OEMs, are particularly aware that supply chain vulnerabilities may not be fully addressed prior to ramp up.
While Boeing [BA 73.69 -0.75 -1.01% ] projects demand for 34,000 aircraft over the next 20 years our numbers are within 2 percent of Boeing’s estimates, most suppliers we know are concerned about their operational and financial ability to support this surge.
Furthermore, this industry is clearly exposed to the effects of highly-disruptive macro events, either regional war or natural disasters. While the globalization of the aerospace industry has benefited sales and dampened market cyclicality, it has also created global challenges, which in turn have increased industry exposure. How to best manage this exposure is a complicated question that will be debated at the show.
Strange Random Aircraft Quote:
“But I have seen the science I worshipped and the aircraft I loved destroying the civilization I expected them to serve.” – Charles Lindbergh (American Aviator remembered for the first nonstop solo flight across the Atlantic, from New York to Paris, in 1927. 1902-1974)
- In pictures: 48 years of Farnborough (edition.cnn.com)
- Farnborough Airshow 2012 hotting up (surreyheath-residents.co.uk)
- 48th Farnborough International Airshow set to welcome record numbers (surreyheath-residents.co.uk)
- You: Boeing set for orders fightback at Farnborough show (france24.com)
- Korean Air’s 737-900ER Lands at Farnborough to Showcase New Boeing Sky Interior (prnewswire.com)
- Boeing hopes for year of the Max at air show (komonews.com)
- Boeing set for Farnborough fightback (vancouverdesi.com)
- Farnborough Air Show Aerospace Alliance reception live coverage (al.com)
Posted on July 10, 2012, in Article and tagged Bachelor of Arts, Bangalore, Boeing, Charles Lindbergh, Dubai, Farnborough, Farnborough Airshow, Paris, Singapore, United States. Bookmark the permalink. Leave a comment.