As the aviation industry’s hopes of returning to a tariff-free trade agreement were boosted by US Transportation Secretary Sean Duffy, Airbus has reached a deal with Vietnamese budget airline Vietjet for up to 150 single-aisle jets at the Paris Air Show.
The deal was made public on Tuesday by the French airline maker.
Airbus accounts for 86 percent of Vietnam’s jets, which is the main supplier of jets. Washington is putting pressure on the export-dependent Southeast Asian nation to purchase more US goods.
Nguyen Thi Phuong Thao, the chairwoman of Vietjet, stated that plans to create a significant aviation hub in Vietnam, which Airbus claims has seen its aviation market grow by 7.5 percent annually, supported the airline’s order volume.
According to estimates from Cirium Ascend, a deal for 150 A321neos could be worth about $9.4 billion.
The agreement was the most recent business announcement made by Airbus at Paris, France’s largest aviation trade fair.
As airlines reconsider purchasing US-made jets in response to ongoing tariff threats in recent months, Airbus has gained ground over Boeing, its main rival. In response to tariff threats, Ryanair, a budget airline, threatened to cancel Boeing aircraft orders in May.
A tariff truce?
One of the most obvious indications yet that US President Donald Trump’s administration would favor a return to a 1979 zero-tariff trade agreement was Duffy’s claim that he wanted civil aviation. Duffy added, “While the White House was aware that the US was a net exporter of aerospace,” the country also was in a complicated tariff situation.
You should check the impact that free trade has had on aviation, once more. They have had a remarkable time. It’s a fantastic export market, Duffy claimed. The White House is aware of this, but if you go there and observe the moving parts of what they are dealing with, it can be quite intense and overwhelming.
Trump’s sweeping 10 percent import tariffs pose a problem for a sector that is already grappling with supply chain issues and Middle Eastern conflict that was the result of last week’s deadly Air India crash and conflict.
The US Commerce Department launched a “Section 232” national security investigation into the imports of commercial aircraft, jet engines, and other components that might lead to even higher tariffs on those items in early May.
Trump has been under intense lobbying from airlines, plane manufacturers, and a number of US trading partners to reinstate the 1979 agreement’s tariff-free regime.
Boeing was holding a subdued show and parking announcement while examining the investigation into the fatal crash of an Air India Boeing 787 last week and the deal-making Trump Middle East tour.
AirAsia, a well-known Airbus customer, was the subject of a new focus, with Brazil’s Embraer looking to buy 100 A220s after losing a crucial Polish contest, according to delegates. Additionally, it was anticipated that Airbus would reveal Egyptair as the source of a recent, unidentified order for six more A350s.
Source: Aljazeera
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