A220-300.jpg James Pozzi/Aviation Week

Spotlight On Services At Farnborough 2018

Plenty of aftermarket business was conducted at this week's air show.

The Farnborough and Paris air shows are normally viewed through the prism of new aircraft orders or launches, but 2018 will also go down as the year Airbus and Boeing began concerted marketing for the aftermarket businesses.

Boeing kicked things off by announcing a raft of commercial and military services deals worth up to $2.1 billion. These included: parts support from its subsidiary Aviall for Cargolux and Ukranian manufacturer Antonov; a global fleet care contract for Primera Air’s 737NG and Max aircraft; Airplane Health Management sign-ups by Westjet and China’s Okay Airlines; landing gear exchanges with Atlas Air; component support for Eva Airways; a 777 maintenance program for Emirates; and electronic flight bag services across Hawaiian Airlines’ fleet.

Airbus, meanwhile, said it aims to triple its services revenue over the next 10 years, from $3.2 billion to $10 billion, an expansion program that will include certain support services for competitor aircraft.

However, the European manufacturer has plenty of ground to make up. Helped by a much larger military business, Boeing’s services business was worth roughly $15 billion last year and the US company wants to take that to $50 billion in the next 10 years.

"The commercial airplane business fuels an enormous ecosystem of service providers,” said Boeing’s VP of commercial marketing, Randy Tinseth.

"We see a market in which airlines outsource more and more, a market in which data and data analytics help aircraft and airline networks become more efficient and reliable, and a market in which new technologies provide new services solutions. All of these trends drive greater demand for integrated solutions over the life of an airplane."

Boeing estimates that the commercial maintenance and engineering market will be worth about $2.4 trillion over the next 20 years. It also forecast that the Asian aftermarket, at $3.4 trillion, will be worth almost double the European and North American markets combined.

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