Boeing overwhelms Airbus on Asian demand for stretched 737 jet

Employees remove window covers from an aircraft during Paris' International Air Show.

Boeing dominated the deal flow at the Paris Air Show, overwhelming rival Airbus on the back of Asian demand for the new Max 10, the biggest version of its 737.

The US planemaker secured orders and expressions of interest for more than 500 jets worth as much as US$66 billion (NZ$91b) through Tuesday, compared with Airbus's tally of 227 airliners for about US$24b (NZ$33b).

Airbus could still fire back, as the Toulouse, France-based manufacturer's veteran sales chief John Leahy will be loath to be outdone in what's set to be his last appearance at the aviation industry's biggest gathering.

Boeing's 737 Max 10, rolled out to combat Airbus's hot-selling A321neo, has secured US$30b in commitments alone at the show. While many deals were tentative or involve conversions of existing contracts, the overall haul looks set to surpass the total US$50b signed at the 2016 show in Farnborough, England, which was the lowest figure since 2010.

Asian purchasers were active as they gird for an accelerating travel boom. That's a contrast to the relatively restrained buying from crowded markets in the US and Europe.

"We have never seen a demographic shift like that ever in the world, in terms of the scale but also the purchasing power," Domhnal Slattery, chief executive officer of Avolon, said after the world's third-largest lessor ordered US$8.4b of Boeing planes.

"We're backing that global trend."

The leasing company, which is now owned by Bohai Capital Holding, was joined by other Asian buyers of Boeing planes, including SpiceJet of India, Chinese carrier Okay Airways Co, Japan Investment Adviser Co and BOC Aviation.

The leasing arm of China Development Bank signed agreements to buy planes from both Airbus and Boeing.

Avolon decided to lock in deliveries of as many as 125 of Boeing's upgraded narrowbody jets because production slots are "very valuable real estate."

The Max family of planes is oversold through 2020, and capacity is finite for the model favoured by budget carriers, Slattery said in an interview. He projects the middle class in Asia to eventually swell by 1 billion people in the coming years.

"These people are going to get on planes," said Slattery. "And there's no going back." Boeing said demand for single-aisle planes as well as wide-bodies remains buoyant, despite concerns about economic and political turbulence in the Middle East and low fuel prices serving as disincentive to invest in more efficient aircraft.

"We are continuing to see strong energy in the marketplace," said Boeing Chief Executive Officer Dennis Muilenburg, predicting new orders should roughly match deliveries this year. "I think there's a little upside here this week" at the Paris show.

The Max 10, the first new model from Chicago-based Boeing since the 777X series was unveiled at the Dubai Air Show in 2013, will be 5 1/2 feet (1.68 meters) longer than the $119.2m Max 9, currently the biggest member of the re-engined 737 family, which was launched in 2011.

With numerous conversions among the Boeing orders, "that wouldn't qualify as a launch as far as we're concerned at Airbus," said sales head Leahy, who earlier quipped that the Max 10's biggest competitor is the sister Max 9. "Let's talk about the actual incremental orders they've got, and I think our numbers are looking pretty good. But you can't go home early."