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BBC World Service

Growing markets make room for new manufacturers at Paris Air Show

Theo Leggett Jun 21, 2011
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BBC World Service

Growing markets make room for new manufacturers at Paris Air Show

Theo Leggett Jun 21, 2011
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JEREMY HOBSON: As of this morning Airbus and Boeing have announced about $25 billion in new orders at the Paris Air Show. But the big news is that the heads of both companies have said publicly that their long-held dominance of the market is over.

The BBC’s Theo Leggett is with us from the Paris Air Show with more. Good morning Theo.

THEO LEGGETT: Good morning Jeremy.

HOBSON: Well, Theo, when the heads of Airbus and Boeing say the duopoly is over, what are they talking about? Who are the new players?

LEGGETT: Well, they’re just recognizing reality really. At the moment of you take a plane, you probably will still ride on a Boeing or Airbus, especially if you’re traveling internationally. But at the lower end of the market — regional jets that go shorter distances — there’s already a number of players including Brazil’s aircraft manufacturer Embraer and the Canadian manufacturer Bombardier. But, China and Russia are waiting in the wings.

HOBSON: Did all the focus on building huge planes like the Airbus A380 or the 787 Dreamliner set the big players — Boeing and Airbus — back?

LEGGETT: It may have distracted them a little bit and frankly when you look at the 787 Super Jumbo down the runway from me now, you can see why. These things are spectacular. They do make money, but that’s not what these companies depend on. They really do need to sell lots of the A320s and the 737s — that kind of thing. And they still will be selling them. It’s just there’s room for more in the market.

HOBSON: Is the end of the duopoly being seen in the orders that you’re seeing at the Paris Air Show?

LEGGETT: Not really. Boeing and Airbus are still stacking them in. Airbus is expected to announce the biggest single order for planes that we’ve ever seen. There is room for more manufacturers manufacturers — not just Boeing and Airbus. It does mean perhaps that the established manufacturers are going to have to be a bit more on their toes and make sure they are selling the very best product.

HOBSON: The BBC’s Theo Leggett with us from the Paris Air Show. Theo, thank you.

LEGGETT: Thanks Jeremy.

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