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AirAsia plays down prospect of Airbus, Embraer ( ERJ ) deals at

show

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CEO of AirAsia owner says group focusing on restructuring

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Airbus bullish on dividends, says supply tensions easing

By Tim Hepher, Paul Sandle and Joe Brock

PARIS, June 18 (Reuters) - The world's biggest air show

looked set on Wednesday for a muted finale after the owner of

budget carrier AirAsia, often a source of last-minute dealmaking

drama, played down the prospect of expected plane deals with

Airbus or Embraer ( ERJ ).

Delegates were already braced for a low-key Paris Airshow

after Boeing ( BA ) struck huge deals during U.S. President

Donald Trump's recent trip to the Middle East. The U.S. company

then scaled back its presence at the show to focus on the probe

into last week's deadly crash of an Air India Boeing 787.

But European rival Airbus has been steadily racking

up business, and underscored its confidence about the future on

Wednesday by holding out the prospect of higher dividends.

Talk was rife in the chalets that Airbus might seal deals

with AirAsia for its A321XLR single-aisle jet and smaller A220

model to put a final gloss on the show.

Airline entrepreneur Tony Fernandes, the CEO of AirAsia

owner Capital A Group, told Reuters that it was in

talks to buy 50 to 70 A321XLR jetliners, and 100 A220s or

competing E2 regional jets from Brazil's Embraer ( ERJ ).

But he played down the prospect of a deal in Paris, saying

the first priority was to complete the group's restructuring.

"I don't think there'll be an order at this air show. We're

still doing a lot of work with Airbus and other (manufacturers)

.... I think we'll look to do something imminently, in the next

1-3 months," he said in an interview.

Two industry sources said Airbus had made an "aggressive"

offer to boost A220 orders and win a launch customer for a new

160-seat version, or kickstart a larger version still on the

drawing board.

But they added that - barring any further twist in

negotiations that could not be ruled out - the talks had

stalled, partly over financing.

Still, other deals were getting done.

Embraer ( ERJ ) said on Wednesday it had secured an order for 60 of

its E175 regional jets from SkyWest Airlines, which also agreed

purchase rights for a further 50 of the aircraft.

Airbus announced an order for two A350 freighters from

logistics company MNG Airlines, and EgyptAir was unveiled as the

previously-undisclosed buyer of six A350-900 long-haul jets.

Planemakers have been struggling to keep up with demand for

new, more fuel-efficient aircraft since the end of pandemic-era

travel restrictions, with supply chain problems - particularly

with engines - delaying some deliveries.

Airbus said on Wednesday, however, that since early 2025 it

had experienced 40% fewer disruptions caused by delayed

components at its production facilities.

On the defence side of the show, U.S. drone maker Anduril

and Germany's Rheinmetall said they would partner to

build aerial drones for European markets, in a sign of Europe

leveraging U.S. technology to boost military capabilities.