(AOF) – Good news for Airbus. BOC Aviation has reached an agreement with the European giant regarding an order for 80 A320neo family aircraft. The amount of the contract was not disclosed. The aircraft will be delivered between 2027 and 2029. “We are proud to continue our long-standing relationship with Airbus, with whom we have been partners for more than 26 years,” said Robert Martin, CEO of BOC Aviation.
“This is the largest single order we have ever placed and will bring the total number of Airbus aircraft purchased since our inception to 546,” added the leader.
Before concluding: “it underlines our continued confidence in the A320neo family for its reliability and operational efficiency and reflects the popularity of the aircraft with our customer airlines”.
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=/ Key points /=
-Aeronautical manufacturer co-world leader with Boeing, born in 1949 under the name Aérospatiale, diversified into satellites;
– Turnover of €49.9 billion, drawn from civil aircraft at 67%, defense & space activities at 21% and helicopters at 12%;
– Order book of €373 billion, 29% from Asia-Pacific, 30% from Europe, 21% from North America, 9% from the Middle East and 5% from Latin America;
– Business model of offering safe and environmentally friendly aeronautical and space solutions, with a strong commitment to society and public services;
– Open capital with strong positions from the French, German (11% each) and Spanish (4%) States, the 9-member Board of Directors being chaired by René Obermann, Guillaume Faury being Chief Executive Officer;
– Financial situation supported by public finances, cash at the end of June amounting to nearly €34 billion.
=/ Issues /=
– “Next chapter” initiative based on 3 pillars -simplification, strengthening and growth- and aiming to create a more profitable, more resilient and leading company in the decarbonization of the industry;
– Innovation strategy integrated into the business model and supported by €2.9 billion in R&D:
– “Fast-Track” roadmap prioritizing electrification, industrial systems, connectivity, autonomy, hardware and artificial intelligence,
– “CRT” organization focused on disruptive technologies, associated with external partnerships,
– structuring: E-Fan Family, ATTOL Fello’Fly, ACIC, TELEO, .ACUBED, BIZ Lab…;
– Environmental strategy with the ambition to become No. 1 in carbon-free aviation:
– design of a “ZEROe” aircraft with hybrid-hydrogen fuel,
– integration into the reporting of emissions emitted by customers,
– launch of 2 hydrogen engine development centers in France and Germany,
– High5+ initiative to reduce emissions and waste during the production process;
– Ramp-up of A320 Family and A350 freighters.
=/ Challenges /=
– Expectation for 2023, or even 2025, of the resumption of air traffic at 2019 levels;
– Market sensitivity to order intake, type A321 by Delta Airlines;
– Evolution of the legal file opposing the group to the German OHB;
– Impact of the pandemic: 30% increase in turnover at the end of June and return to net profitability -€2.2 billion-, boosted by the rebound in sales in civil aeronautics;
– 2021 objectives, statements: delivery of 600 civil aircraft, operating profit of €4.5 billion and free cash flow of €2.5 billion;
– Abolition of the 2020 dividend
Consolidation phase in aeronautics
The size of French players is very limited compared to that of their American competitors. Hence the need to bring these stakeholders together, thus making it possible to increase the budget allocated to research and development and to gain weight in international calls for tenders. The Aéro Partenaires investment fund was launched in 2020 to support this movement. It was created by the investment company Ace Capital Partners, a subsidiary of Tikehau Capital, with the French State, Airbus, Safran, Dassault Aviation and Thales. This fund carried out several transactions in 2021.