(Bloomberg) -- Aviation executives gathered for a second day at the Paris Air Show, the first time the event takes place outside the French capital in four years. The opening day saw local champion Airbus SE pull in a record order from Indian carrier IndiGo for 500 A320 family aircraft, and Day 2 is gearing up for another flurry of commercial announcements from the European manufacturer and its US rival, Boeing Co.
Amid all the action, some aviation veterans are cautioning that airlines might be over-ordering, particularly as economic growth tapers off and leisure customers risk running out of funds after the first post-pandemic booking rush. On the other hand, constrained availability of new jets is forcing customers to act if they want to avoid being relegated to the end of the line.
Here are some of the main highlights from yesterday:
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Following are the main developments at the show on Tuesday. All times are local:
Boeing signed a firm order with Air Algerie for eight 737 Max-9 aircraft and two converted 737 freighters called BCF. The two companies have worked together since the 1970s, and Air Algerie will use the new planes to replace aging 737 models. It's the first firm order announcement for Boeing at this year's Paris Air Show. Air Algerie is also considering widebody purchases to expand in the future.
Turkish Airlines is still studying options on a mammoth 600-plane order, and now expects to make a decision on competing Boeing and Airbus models within three to four months, Chief Executive Officer Bilal Eksi said in an interview at the Paris Air Show. The timeframe for a deal has slipped since mid-May, when the carrier's chairman predicted an order would be made at an airlines conference held in Istanbul a few weeks later. Turkish is also considering a separate regional-jet order pitting Airbus against Embraer, Eksi said.
Lockheed Martin Corp. is working to close F-35 sales to Greece and the Czech Republic, following recent orders by Switzerland, Germany and Canada, said Greg Ulmer, an executive vice president and head of the defense giant's aeronautics division. The stealthy US fighter jet has cemented its role as a weapon of choice for NATO members since Russia invaded Ukraine last year.
The F-35 surprised some with its role as a "sensing vacuum," capable of sizing up and sharing information on threats in the war theater, Ulmer said.
Airbus reached a deal to sell nine A350-1000 aircraft to Philippine Airlines, which plans to operate the twin-aisle jetliners on services from Manila to cities in North America. The airline will fit the aircraft with 380 seats in a three-class configuration, Stanley Ng, the carrier's president and chief operating officer, said at a briefing in Paris.
GE and its joint venture partner Safran have increased output of their CFM Leap engines by 30% in the first half compared with same period in 2022, said supply chain executive Mike Kauffman. The company created a 200-person procurement team last year and improved tools to track down bottlenecks among suppliers, he said. The production ramp-up is now focused on just 80 of the 5,000 discrete parts needed for the two Leap models used on Airbus and Boeing narrow-bodies, he said.
Testing of a redesigned high-pressure turbine blade for the Leap narrowbody engine "is doing very well," said General Electric Co. engineering Vice President Mohamed Ali. GE has replicated and overcome faults that occur in harsh environments such as the Middle East, affecting durability on the Leap and its competitor, Pratt & Whitney's geared-turbofan, Ali said in an investor presentation.
GE, a partner on the Leap with Safran SA, is also progressing with upgrades to the fuel nozzle and accessory radial drive shaft, said Russell Stokes, CEO of the manufacturer's commercial engine unit. While the Leap, which powers all Boeing 737 Max and 55% of Airbus A320 jets, is outperforming its predecessor,"durability has to be our absolute No. 1 focus," Stokes said.
Australia's Qantas Airways Ltd firmed up orders for an additional 9 Airbus SE A220 jets, the European planemaker said in a statement Tuesday. With the latest addition, Qantas will now take 29 A220-300s as part of order first announced in December 2021.
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