Airbus strikes Vietjet deal at Paris Air Show, hopes for tariff rollback
Airbus has struck a deal with Vietnamese budget airline Vietjet for up to 150 single-aisle jets at the Paris Air Show as the aviation industry's hopes to return to a tariff-free trade agreement were given a boost by United States Transportation Secretary Sean Duffy.
The French planemaker announced the deal on Tuesday.
Airbus is the main supplier of jets to Vietnam, accounting for 86 percent of the planes currently operated by Vietnamese airlines. The export-dependent Southeast Asian country is under pressure from Washington to buy more US goods.
Vietjet Chairwoman Nguyen Thi Phuong Thao said the scale of the airline's orders was backed by plans to develop a major aviation hub in Vietnam, which Airbus says has seen its aviation market grow by 7.5 percent a year.
A deal for 150 A321neos could be worth around $9.4bn, according to estimated prices provided by Cirium Ascend.
The agreement was the latest in a flurry of business announced by Airbus at the world's biggest aviation trade fair in Paris, France.
Airbus has made gains against its chief competitor Boeing as airlines reconsider purchases of the US-made jets amid ongoing tariff threats in recent months. In May, budget airline Ryanair threatened to pull orders of Boeing aircraft amid tariff threats.
Duffy said he wanted civil aviation to return to a 1979 zero-tariff trade agreement, in one of the clearest signs yet that the administration of US President Donald Trump might favour such a move. However, Duffy added that while the White House was aware that the US is a net exporter in aerospace, it was also dealing with a complex tariff situation.
'Now, again, you look at what free trade has done for aviation. It's been remarkable for them. It's a great space of net exporters,' Duffy said. 'And so the White House understands that, but if you go over there and you see the moving parts of what they're dealing with, it is pretty intense and it's a lot.'
Trump's sweeping 10 percent import tariffs are a headache for an industry already battling supply chain challenges and facing fresh turbulence from last week's deadly Air India crash and conflict in the Middle East.
In early May, the US Commerce Department launched a 'Section 232' national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for even higher tariffs on such imports.
Airlines, planemakers and several US trading partners have been lobbying Trump to restore the tariff-free regime under the 1979 agreement.
Boeing was having a subdued show and parking announcements while focusing on the probe into last week's fatal crash of an Air India Boeing 787 and after it racked up huge deals during Trump's recent tour of the Middle East.
Attention turned to another big Airbus customer, AirAsia, long associated with buzzy show finales and looking at buying 100 A220s, with Brazil's Embraer seeking to wrest away the deal after losing a key contest in Poland, delegates said. Airbus was also expected to reveal Egyptair as the airline behind a recent unidentified order for six more A350s.
Even so, Airbus's hopes of using the event as a showcase for its first significant deal with Royal Air Maroc faded after the airline postponed plans to announce a larger Boeing deal, delegates said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Jazeera
2 days ago
- Al Jazeera
Thailand protesters demand PM's resignation over leaked call with Hun Sen
Hundreds of protesters have gathered in Thailand's capital to demand the resignation of Prime Minister Paetongtarn Shinawatra amid growing anger over a leaked phone call with former Cambodian Prime Minister Hun Sen. Demonstrators took to the streets on Saturday, outraged by a June 15 conversation in which Paetongtarn urged Hun Sen – the current Cambodian Senate president who still wields considerable influence in his country – not to listen to 'the other side' in Thailand, including an outspoken Thai army general who she said 'just wants to look cool'. The army commander was in charge of an area where a border clash last month led to one Cambodian soldier being killed. The man was killed on May 28 following an armed confrontation in a contested area. The leaked phone call with Hun Sen was at the heart of Saturday's protest and has set off a string of investigations in Thailand that could lead to Paetongtarn's removal. Protesters held national flags and signs as they occupied parts of the streets around the Victory Monument in central Bangkok. At a huge stage set up at the monument, speakers expressed their love for Thailand following the intensified border dispute. Many of the leading figures in the protest were familiar faces from a group popularly known as Yellow Shirts, whose clothing colour indicates loyalty to the Thai monarchy. They are longtime foes of Paetongtarn's father, former Prime Minister Thaksin Shinawatra, who reportedly has a close relationship with Hun Sen. Yellow Shirts rallies turned violent and led to military coups in 2006 and 2014, which respectively ousted the elected governments of Thaksin and Paetongtarn's aunt, former Prime Minister Yingluck Shinawatra. Hun Sen on Saturday promised to protect his country's territory from foreign invaders and condemned what he called an attack by Thai forces last month. At a 74th anniversary celebration of the foundation of his long-ruling Cambodian People's Party, Hun Sen claimed the action by the Thai army when it engaged Cambodian forces was illegal. He said the skirmish inside Cambodian territory was a serious violation of country's sovereignty and territorial integrity, despite Cambodia's goodwill in attempting to resolve the border issue. 'This poor Cambodia has suffered from foreign invasion, war, and genocide, been surrounded and isolated and insulted in the past but now Cambodia has risen on an equal face with other countries. We need peace, friendship, cooperation, and development the most, and we have no politics and no unfriendly stance with any nation,' Hun Sen said in an address to thousands of party members at the event in the Cambodian capital, Phnom Penh. There is a long history of territorial disputes between the countries. Thailand is still rattled by a 1962 International Court of Justice ruling that awarded Cambodia the disputed territory where the historic Preah Vihear temple stands. There were sporadic though serious clashes there in 2011. The ruling from the UN court was reaffirmed in 2013, when Yingluck was prime minister. The scandal has broken Paetongtarn's fragile coalition government, costing her Pheu Thai Party the loss of its biggest partner, the Bhumjaithai Party. The departure of Bhumjaithai left the 10-party coalition with 255 seats, just above the majority of the 500-seat house. Paetongtarn also faces investigations by the Constitutional Court and the national anticorruption agency. Their decisions could lead to her removal from office. Sarote Phuengrampan, secretary-general of the Office of the National Anti-Corruption Commission, said on Wednesday that his agency is investigating Paetongtarn for a serious breach of ethics over the Hun Sen phone call. He did not give a possible timeline for a decision. Reports said the Constitutional Court can suspend Paetongtarn from duty pending the investigation and could decide as early as next week whether it will take the case. The prime minister said on Tuesday she is not worried and is ready to give evidence to support her case. 'It was clear from the phone call that I had nothing to gain from it, and I also didn't cause any damage to the country,' she said. The court last year removed her predecessor from Pheu Thai over a breach of ethics.
Al Jazeera
4 days ago
- Al Jazeera
Thailand moves to re-criminalise cannabis in blow to $1bn industry
The Thai government is moving to tighten rules around the sale of cannabis, just three years after the kingdom decriminalised recreational use of the popular substance. Thailand's Ministry of Public Health on Tuesday night ordered that cannabis use be restricted to medical use only, throwing the estimated $1bn industry into a state of uncertainty. Government spokesperson Jirayu Houngsub said cannabis had created serious social problems for young people, and the industry, which has boomed in recent years, needed to be scaled back. 'The policy must return to its original goal of controlling cannabis for medical use only,' Jirayu said in a statement. The order, however, is not law yet. It will need to be published in the official Royal Gazette to come into force, and the government has not indicated when that will happen. Thailand became the first country in Asia to fully decriminalise cannabis in 2022, in a move that has been wildly popular with tourists but less so among more conservative Thais. Thousands of cannabis stores have opened across Thailand in the past three years, although it has remained relatively unregulated despite multiple attempts by the government. The latest move to restrict cannabis use comes amid wider political turmoil in Thailand. Last week the Bhumjaithai Party, previously a champion of decriminalising cannabis, withdrew from the government's ruling coalition due to its mishandling of a border conflict with Cambodia. The Thai Chamber of Commerce previously estimated that the cannabis trade could be worth $1.2bn by 2025, although experts say it has not reached its full potential due to the uncertainty that has plagued regulation around the industry since it was decriminalised.
Al Jazeera
5 days ago
- Al Jazeera
French far right's Le Pen asks protege to prep for 2027 presidential bid
France's far-right leader, Marine Le Pen, has openly suggested that her political heir apparent, Jordan Bardella, could take her place in the 2027 presidential election, as a court ruling threatens to derail her candidacy. In an interview published on Wednesday by French magazine Valeurs Actuelles, the leader of the National Rally (RN) party said: 'I accept that I cannot run. Jordan accepts that he must step in. I myself have asked him to think about it and prepare for this possibility.' Le Pen's statement is the clearest sign yet that the three-time presidential contender is preparing for the real possibility of being sidelined. In March, a French court convicted her of embezzling European Union funds and banned her from holding public office for five years. She has appealed. While Le Pen has denounced the ruling as a 'witch hunt' and a 'political decision', the consequences are far-reaching. A Paris appeals court is expected to rule on the case in 2026, just a year before the election. If Le Pen's sentence is overturned or reduced, she could still return to the race. 'Jordan and I will enter the presidential primary race until the court case is decided,' Le Pen said. 'Of course, the situation is not ideal. But what else do you suggest? That I commit suicide before I'm murdered?' Le Pen warned that blocking her from running could further alienate voters and destabilise the political landscape. 'Many French people, regardless of their political convictions, would then understand that the rules of the game have been manipulated,' she said. Bardella has not yet commented publicly about Le Pen's endorsement, and the two have long brushed off reports of internal power struggles. Still, as Bardella's profile grows, speculation persists about their working relationship. Bardella, 29, was elected president of the National Rally in 2022, while Le Pen assumed a parliamentary role. His rise has been meteoric, thanks in part to his media savvy and polished image — though critics question how he'd hold up in a high-pressure debate. In April, Le Pen jokingly downplayed the idea of Bardella running, saying he'd be the party's candidate 'if I were hit by a truck'. President Emmanuel Macron, who helms the liberal centrist Renaissance party, is barred from seeking a third term under the country's electoral laws. Aside from centre-right former Prime Minister Edouard Philippe, few major figures have formally declared they are running in 2027. A recent poll found Bardella edging out Le Pen in popularity, with 28 percent of respondents saying they'd prefer to holiday with him, compared to 22 percent for his mentor.
