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ADS reports highest aircraft orders since 2014

ADS has revealed that year to date global aircraft orders are the highest since 2014, with 2,188 aircraft orders placed, as the UK’s aerospace sector continues to soar in its ongoing recovery.

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A new report from ADS Group, the trade association for aerospace, defence, security and space organisations, highlights that orders for single-aisle aircraft continue to dominate market recovery and account for almost 80% of orders in 2023.  
 
As aircraft orders continue to surge, global deliveries remain steady and just below 2019 trends with 860 deliveries year to date, a 12% increase on the same period in 2022. Deliveries for single-aisle and wide-body aircraft increased by 10% and 24% respectively at the end of Q3 which is positive for the UK’s advanced manufacturing sector.  
 
For the third consecutive month, the backlog of aircraft orders has hit another record-breaking high at 14,690 aircraft with 10% growth on Q3 2022. At current rates the aircraft on backlog order are estimated to be worth £229 billion to the UK’s aerospace sector. Year to date just 144 aircraft orders have been cancelled, significantly below trends seen in the last few years as key decision makers continue to hold firm on aircraft choices. 

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Above: Kevin Craven, Chief Executive, ADS Group.
Courtesy ADS

 
ADS Group calls on Government to foster an attractive business environment  
Ahead of the Autumn Statement set to take place on 22nd November, ADS has written to the Chancellor and continues to urge the UK Government to develop and implement a new industrial strategy.  
 
Kevin Craven (above), Chief Executive, ADS Group said: “For the UK’s thriving aerospace sector which supports 108,000 direct jobs while generating £27 billion in turnover, £10.9 billion in value add, and £18.6 billion in exports to continue to excel in a highly competitive global market, ongoing support is essential.
 
“In the Autumn Statement, we hope the see measures that incentivise investment in the UK, as well as extended support for aerospace sector R&D beyond 2025, which is critical to securing continued industry investment to accelerate the development of the next generation cleaner and more efficient aircraft technology in the UK.”  
 
Ahead of the Autumn Statement, ADS has identified areas that a clearly defined industrial strategy could deliver upon while addressing key blockers to growth and maximising return on public investment. A summary of ADS recommendations to the Chanceller includes calls to:  

  • Introduce a reformed R&D tax credit scheme over a longer timeframe, ensuring it addresses capital expenditure and maintains support for SMEs
  • Encourage investment in the UK’s defence industrial base through long-term clarity on future defence spending  
  • Provide long-term uplifted funding for aerospace R&D through the Aerospace Technology Institute (ATI)
  • Involve industry in developing the future revenue certainty scheme for Sustainable Aviation Fuel (SAF), ensuring the fair allocation of financial risk and amendments to related obligations to cover engine testing
  • Prioritise the deployment of functional space programmes and an augmented UK technical capability to deliver upon the 2021 National Space Strategy (NSS)
  • Address the challenges with the access to finance for the UK defence industry, including for SMEs requiring basic banking services and Primes seeking investment
  • Introduce a long-term capital offering for our sector through a new Aerospace and Defence Strategic Supply Chain Fund
  • Bolster the availability of electricity grid connections and support our sectors decarbonise the manufacturing processes
  • Provide added flexibility in the Apprenticeship Levy, both on timescales and funds
  • Strengthen resourcing for key operational agencies including the Export Control Joint Unit (ECJU) and UK Security Vetting (UKSV)
  • Bring forward a scheme to support exporting SMEs with attending international trade events

With 93% of ADS Group members SMEs, ADS works to put these innovative and agile organisations first while securing UK advantage.  

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