On the road to the clouds: the aviation sector faces commercial turbulence

LONDON-Aviation is booming: pbadenger traffic is on the rise, fuel prices are under control and rising demand from Asia is generating aircraft orders. So, what could go wrong?

A great thing; A Commercial War

The aircraft manufacturers of this week's Farnborough International Airshow, a biennial fair where billions of dollars of aircraft and parts are purchased, say that thousands of jobs are threatened in this international industry.

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While Trump said that trade wars are "good and easy to win", US experts say that US companies like Boeing will take the first blow because most of the US Aerospace Production In the United States, it is estimated that "80% of the US aerospace industry is exported," said Richard Aboulafiah, a respected aviation badyst at the Teal Group. "US aerospace is on the front line and expects to be shot first."

This is because aviation is truly global in production and demand. and its Toulouse-based European rival, Airbus, dominates the commercial aircraft market, competing for companies and suppliers from China to Qatar and Canada, and being able to shop for components makes companies more profitable and profitable. his best planes.

"Aerospace feeds on free and open trade," Boeing chief executive officer Dennis Muilenburg told BBC on Monday. "We are concerned that this may affect costs. supply chain, but these supply chains flow in both directions (between China and the United States). It is a complex network around the world.

The United States imposed tariffs on $ 34 billion worth of Chinese goods, with China responding with an equivalent sum. The Trump administration provides tariffs on $ 200 billion worth of additional merchandise. The United States also imposed tariffs on steel and aluminum from China, the EU and several other countries

. Boeing, which describes itself as the "leading US exporter," reported revenue of $ 93.4 billion last year. It employs more than 140,000 people in the United States and 65 foreign countries.

Nearly 80% of the 713 commercial aircraft orders for which Boeing identified a buyer last year came from foreign companies, according to data from Boeing's website. Flydubai, a low-cost carrier based in the United Arab Emirates, ordered 175 Boeing 737 Max in December, the company's biggest contract of the year.

China, which has been the target of much of Trump's anger to swap, is also a major customer for Boeing. 120 Boeing companies ordered 120 Boeing aircraft last year.

Aware of the economic importance of aviation, the Trump administration sends a large power delegation to Farnborough in the hope of persuading Chinese airlines. world to buy American. What they will meet, it is a global industry worth $ 838 billion in trade and investment that employs millions and supports the defense of the United States and its allies.

Boeing is one of the 108 American companies to exhibit their products. defense contractors such as Lockheed Martin, Northrop Grumman and Raytheon. Exhibitors reported orders for 856 aircraft and 1,407 engines worth $ 116.6 billion at the last Farnborough Air Show in 2016.

But larger companies, including Boeing and Airbus Kavita Dawson, President of Maven Engineering Corp. from Rockville, Md., which provides spare parts for aircraft, locomotives and the oil and gas industry, Lockheed account and the United States.

Dawson said that the price of steel and aluminum, which were hit by the first round of US tariffs, rose from 10 percent to 15 percent in recent months , which translates into manufacturing costs. Many Maven contracts were obtained months ago, so the company had to absorb the increased costs.

"There has already been an impact with raw materials, with production costs and deadlines". "I think, however, with the checks and balances we have in our form of government, that cooler heads will prevail.I do not think there will be a 'war', but there will be an impact on the trade balance. "

Dawson said that even though she appreciates Trump's desire to help American companies, some international customers are worried about her comments on the trade

" There is definitely a reaction to rhetoric, "she said." I appreciate her efforts, but it may not be a bad thing to mitigate a little bit. It would be helpful to American companies that the countries we are dealing with feel that they have their backs turned and that we are partners.

Not far away, John Ashour, president of InterConnect Wiring, who employs 140 people. With fears of a gradual escalation of tensions, InterConnect manufactures high-end cables for major aerospace manufacturers, including Bell Helicopter, BAE Systems and Airbus, and believes its customers will return because the company offers the best possible service.

"We have not changed our approach to business because of this," Ashour said. "Personally, I do not worry about it at the moment, I believe in our president."