By Joanna Plucinska and Dan Catchpole
FARNBOROUGH, England, July 20 (Reuters) – Farnborough Airshow opens on Monday with Boeing and Airbus pursuing aircraft deals and defence firms vying for a share of booming military budgets fuelled by wars in Ukraine and the Middle East.
Planemakers are expected to announce a string of deals during the week, although industry sources say total orders are likely to fall well short of some analyst forecasts of 800 aircraft or more, reflecting supply-chain constraints that continue to limit production.
At the same time, defence companies are arriving in force as governments boost military spending and seek lessons from conflicts that have highlighted the importance of drones, missile defence systems and artificial intelligence.
Monday’s opening also coincides with the first day in office of Prime Minister-in-waiting Andy Burnham, who could make an appearance at the July 20 to 24 event.
Organisers say defence companies will make up half of a record 1,600 exhibitors at the show, highlighting a shift from the commercial aviation roots of an event that began in 1948 as a showcase for British aerospace technology.
The shift reflects how conflicts from Ukraine to the Middle East have transformed spending priorities and accelerated demand for new defence technologies, including unmanned fighter jets, kamikaze drones and autonomous AI software.
On the eve of the event, the head of Boeing’s commercial airplane unit said the company is focused on increasing and improving aircraft production, “not order announcement.”
Sources told Reuters Airbus and Boeing are together expected to secure a little over 300 aircraft orders unless last-minute negotiations produce additional deals.
Among the expected announcements is an order for around 100 narrowbody aircraft from each manufacturer by Irish leasing company SMBC Aviation Capital, the sources said. Bloomberg News first reported the potential deal. None of the companies involved commented.
Other airlines discussing orders include Riyadh Air and Philippine Airlines.
However, there were no immediate signs of a breakthrough in talks between Turkish Airlines and engine makers over long-term maintenance agreements that the carrier has linked to a planned purchase of 150 Boeing 737 MAX jets.
(Reporting by Joanna Plucinska, Dan Catchpole, Tim Hepher, Joe Brock and David Shepardson; Editing by Sharon Singleton)
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