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India Air Boeing 787 crash overshadows industry talks
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Boeing ( BA ) scales back air show presence amid crash probe
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Aircraft orders still expected, led by Airbus
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Tariffs, Mideast conflict also cloud industry outlook
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Poland set to hand Airbus jet order amid warmer French
ties
By Joe Brock, Tim Hepher, Giulia Segreti and Paul Sandle
PARIS, June 16 (Reuters) - The Paris Airshow opens on
Monday with its usual fanfare of aircraft orders expected to be
tempered by concerns over India's deadliest air disaster and
escalating missile strikes between Israel and Iran that have
rattled the global aviation industry.
Every two years, Le Bourget Airport in the northeast of
Paris is transformed into a showcase for the aerospace and
defence industry, its sprawling tarmac lined with fighter jets,
commercial airliners and autonomous drones.
In the pristine white chalets along the flight line,
aerospace executives, government officials and military
delegations gather to strike deals and discuss the geopolitical
forces shaping the future of aviation.
Delegates say they expect this year's event from June 16-20
to be more sombre and several public activities to be scaled
back after last week's air disaster, when an Air India Boeing
787 crashed shortly after takeoff, killing over 240 people.
Investigators are gathering data on the engine, wing flaps
and landing gear, though it is too early to draw conclusions, a
source familiar with the matter told Reuters in India.
India's aviation regulator has ordered safety checks on the
airline's 787 fleet.
The industry has also been shaken by missile strikes between
Iran and Israel, which erupted on Friday - just a day after the
India crash - forcing carriers to cancel or divert thousands of
flights in the latest upheaval to travel in the region.
Aerospace and defence executives are also grappling with
uncertainty over U.S. President Donald Trump's shifting tariff
policies, which many say have been impacting aircraft, engines
and parts, disrupting global supply chains, driving up
production costs and straining international partnerships.
The show's opening coincides with the 10th anniversary of
Trump's first run for office in 2015 ahead of his first term.
But it is the trade policies of his second term that have caused
the industry to defend its previous tariff-free status, as a
pause in his "Liberation Day" tariffs nears a July 8 deadline.
AIRBUS POLAND WIN EXPECTED
Boeing's ( BA ) CEO Kelly Ortberg and Commercial Airplanes boss
Stephanie Pope cancelled their trip to Paris and the U.S.
planemaker is scaling back its schedule at the event as it
focuses on supporting the India crash probe.
The planemaker is eager to keep a low-key presence and avoid
any jarring publicity, though it was too late to remove Boeing ( BA )
advertising banners dominating the venue. Behind Boeing's ( BA ) chalet
at Le Bourget, a gleaming Riyadh Air 787 sits on the tarmac.
Boeing ( BA ) is emerging from back-to-back safety, industrial and
corporate crises triggered by fatal accidents involving the
smaller 737 MAX, which is a separate model to the newer 787.
Aircraft deals will still be announced at the show, where
European politics are also driving some of the discussions.
Sources told Reuters that Poland is expected to announce
Airbus as the winner of a landmark deal to sell around 47 A220
jets to state carrier LOT - part of a wider reset of relations
between Poland and France, where Airbus has its headquarters.
Brazil's Embraer ( ERJ ) had pushed hard for the deal,
the people said. None of the parties agreed to comment.
Airbus is also the front-runner against the same planemaker
for a potential order for dozens of A220 jets from AirAsia, with
Airbus reviving a proposal for a tighter 160-seat cabin layout
while separately showing airlines a stretched version featuring
existing Pratt & Whitney engines, sources said.
Airbus was also expected to kick off the event with two
Saudi orders from AviLease and Riyadh Air.
Boeing ( BA ) has shelved most announcements including a fleet
shake-up by long-time customer Royal Air Maroc, but had already
been heading for a quieter week than Airbus after pre-empting
the show with big orders during Trump's recent Gulf visit.
The air show is also an opportunity for established and
emerging defence and space companies to showcase cutting-edge
technologies such as AI and autonomy.