Boeing crisis, trade tensions cast pall over Paris Air Show

PARIS - Safety concerns, trade wars and growing security tensions in the Persian Gulf region are dampening spirits at the world's largest planemakers as they arrive at this week's Paris Air Show with little to celebrate despite bulging order books.

The aerospace industry's marquee event is a chance to take the pulse of the $150-billion-a-year commercial aircraft industry, which many analysts believe is entering a slowdown due to global pressures from trade tensions to flagging economies, highlighted by a profit warning from Lufthansa late on Sunday.

Humbled by the grounding of its 737 Max in the wake of two fatal crashes, US planemaker Boeing will be looking to reassure customers and suppliers about the plane's future and allay criticism of its handling of the monthslong crisis.

"This is a defining moment for Boeing. It's given us pause. We are very reflective and we're going to learn," Boeing CEO Dennis Muilenburg pledged on Sunday.

The grounding of the latest version of one of the world's most popular jets has rattled suppliers and fazed rival Airbus, which is avoiding the traditional baiting of Boeing while remaining distracted by its own corruption probe.

Aerospace executives on both sides of the Atlantic are concerned about the impact of the crisis on public confidence in air travel and the risk of a backlash that could drive a wedge between regulators and undermine the plane certification system.

The June 17-23 show is not only about jetliner deals, but also a magnet for many of the world's arms buyers who come to preview the latest military equipment, from antiaircraft missiles to hotly sought cyberwar-fighting capabilities.

French President Emmanuel Macron will open the show by unveiling a mock-up of a proposed new fighter as France and Germany sign a deal for its development.

Air show delegates are also watching a face-off between the United States and Iran in the Gulf. The US blamed Iran for attacks on two oil tankers in a vital shipping route that have raised fears of broader confrontation in the region.

In another political row with implications for arms firms attending the show, the US has threatened to cancel Turkey's participation in the Lockheed F-35 fighter jet program over Ankara's purchase of Russian S-400 missile defense systems.

Reuters - Afp

(China Daily 06/18/2019 page11)