Airbus SE and Boeing Co usually do not miss a chance to celebrate their biggest orders at annual air shows — typically, top executives will trumpet them loudly at signing ceremonies staffed with a phalanx of smiling flight attendants.
Not this year. On the first three days at the Farnborough expo taking place outside London, Airbus has cloaked the identity of the customer behind US$24.4 billion in orders at list prices. Boeing followed suit on Wednesday for deals struck for planes valued at US$11 billion before customary discounts.
Why? Airbus chief commercial officer Eric Schulz pointed the finger at US President Donald Trump, whose trade war with China has created a minefield for global companies that do business in both countries.
“The world today is governed by the tweets we receive every morning from one side of the Atlantic,” Schulz told an investor presentation. “So, you know that that is putting a lot of pressure within the airlines, it’s putting a lot of pressure within the governments.”
Some customers, especially in Asia, have asked Airbus “not to fuel the fire,” Schulz said.
Some of the hidden orders came from customers in China, said people familiar with the matter who asked not to be identified discussing non-public information.
Trump is locked in a trade war with the US’ biggest rival for global economic dominance.
The hidden orders constitute a big chunk of Airbus’ sales haul for the show. On Monday, an unidentified leasing firm signed a memorandum of understanding for 80 aircraft in the popular A320neo family, valued at US$8.85 billion before typical discounts.
That was followed by an US$11.5 billion deal for 100 narrow-body jets and one for eight A350-900 widebodies totaling US$2.5 billion. On Wednesday, there was another order, this time for six of its A330neos, valued at about US$1.5 billion.
Most unidentified orders logged by Boeing and Airbus are thought by analysts to be placed by Chinese airlines or leasing companies. The buyers typically do not go public until the purchases are approved by the Chinese government.
“I would prefer to have them disclosed, but at the end of the day, you know what, the money is in the bank,” Schulz said. “And so disclosed, undisclosed, that doesn’t make a lot of difference. The orders is there, that’s it.”
With more announcements on day three of the air show, the tally for the world’s two biggest aircraft manufacturers stood at 780 aircraft, Vertical Research Partners analyst Rob Stallard said.
Airbus had 379, while Boeing had 401, he said.
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