The 53rd International Paris Air Show is currently being held at Paris-Le Bourget Airport. This show allows Airbus SE and other global aerospace giants like The Boeing Company (BA - Free Report) to showcase their new range of products and services to potential customers. Airbus took this opportunity to launch its longest range single-aisle airliner, namely the A321XLR.
Launch of A321XR in Paris Air Show
A321XLR, which is the most fuel-efficient airplane of its category, will burn 30% less fuel per seat than previous-generation competitor aircraft. This aircraft will be ready for commercial delivery from 2023. Airbus already received confirmed orders for 127 A321XLR from various customers across the globe and signed MOU for another 37 airplanes of this variant. The largest order till date for A321XLR came in from American Airlines Group Inc. (AAL - Free Report) for 50 airplanes, which include 30 conversions from existing A321neo orders.
Amid troubled times for Boeing’s premier single aisle 737 Max airplane, we expect more orders to pour in for the latest fuel-efficient Airbus’ A321XLR model.
Other Developments for Airbus
During the 2019 Paris Air Show, Airbus achieved new business for 363 commercial aircraft, comprising 149 firm orders and 214 commitments. It will further add to the tally before the Paris Air show comes to an end.
Apart from the orders for the latest model, Airbus also received orders for A320neos, A321neos and A330neos from customers across the globe. Airbus reaffirmed its tanker partnership with Lockheed Martin Corporation (LMT - Free Report) in the Paris Air show. This partnership will allow these companies to explore opportunities in the global tanker business.
Commercial Aircraft Forecast
Boeing’s latest forecast suggests that growing passenger volumes and increasing airplane retirements will drive the need for 44,040 new jets, valued at $6.8 trillion over the next two decades and up 3% from a year ago. The company also predicted that the demand for fuel-efficient single aisle will be the largest among all airplane categories.
Demand for single aisle airplanes over the next two decades will likely be 32,420, valued at nearly $3.8 trillion. Boeing and Airbus, given their high-quality offerings, are expected to rule this space.
Shares of Airbus have outperformed its industry in the past 12 months.
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