Farnborough Airshow starts with $10-billion deals for Airbus and Boeing

Airbus and Boeing announced more than $10-billion of combined deals in the opening hours of the Farnborough Airshow on Monday, suggesting demand for new jets remains in health despite worries over trade tensions and Brexit.

Even before the first displays had taken to the skies over a sun-baked southern England, U.S. plane maker Boeing said delivery firm DHL had placed a $4.7 billion order for 14 777 freighters, and purchase rights for seven additional freighters.

It followed that up with a $3.5 billion deal for 30 of its hot-selling single-aisle 30 737 MAX 8 aircraft with U.S. aircraft leasing firm Jackson Square Aviation.

Meanwhile, Airbus announced a memorandum of understanding for Taiwanese startup StarLux Airlines to buy 17 of its A350 wide-body planes worth around $6 billion at list prices.

The order contest is expected to stretch for days of the July 16-22 air show, although analysts will be watching closely to see how many of the deals are new, and how many involve adjusting earlier business or switching models – something not always easy to spot at first.

Higher oil prices and interest rates are seen as a warning sign that the long-running aviation boom may be peaking, while trade tensions between the United States and China and concerns about disruptions to supply chains from Britain’s departure from the European Union are also worrying the industry.