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Aircraft orders and deliveries up on 2022

Year to date aircraft orders and deliveries are significantly ahead of 2022, with the latest data highlighting strong orders and a substantial backlog, indicating strong demand for newer, greener and fuel-efficient aircraft.

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A new report from ADS Group, the trade association for aerospace, defence, security and space organisations, highlights that year to date 2,430 aircraft orders have been placed, a 43% increase on the same period in 2022. Single-aisle aircraft account for just over 80% of orders placed this year, demonstrating the rapid demand for recovery in the domestic and short-haul travel industry post-pandemic.

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Year to date deliveries have also increased, with the 966 aircraft delivered marking a 12% increase on 2022 with 799 single-aisle and 122 widebody aircraft delivered. Although ahead of 2022 by 106 aircraft, ongoing supply chain constraints continue to hamper the ramp up of global aircraft production.

October 2023 marks the third record-breaking high, with the global aircraft order backlog now totaling 14,794 aircraft. At current rates, the aircraft on backlog order are estimated to be worth £234 billion to the UK’s aerospace sector.

In the Autumn Statement on 22nd November, the Chancellor announced welcome and timely measures that are critical to secure the UK’s advantage in an increasingly complex environment.

For the UK’s aerospace sector, which contributes £10.8 billion in value add to the UK economy, £975 million is being made available to support the development of energy efficient and zero-carbon aircraft technology.

Prior to the Autumn Statement the publication of the Advanced Manufacturing Plan, set against a backdrop of increasing global competition was welcome. The continued commitment towards aerospace R&D is significant and will provide a boost to continued investment in innovation and advanced manufacturing in the UK. In addition, the Government’s commitment to expand the Made Smarter programme to a pan-UK programme, will benefit businesses across our nations and regions.

Commenting on these announcements, Aimie Stone, Chief Economist at ADS said: “Measures announced in the Autumn Statement and consequent Advanced Manufacturing plan reaffirm the Government’s long-term backing of our world-leading manufacturing sectors. This is a very timely intervention given the growing appetite for innovation in aerospace alongside the recovery of aircraft order book year to date, showing industries’ continued commitment to net zero.”

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“Continued commitment towards aerospace R&D is significant and provides a boost to continued investment and innovation. However, ongoing supply chain challenges continue, and it is important these are recognised and addressed to secure the long-term advantage of our industry.”

As well as Advanced Manufacturing support, other sector relevant measures include changes to the current R&D Expenditure Credit scheme, a £50 million pilot to address barriers to entry in high-value apprenticeships, capital full expensing to be made permanent as well as the creation of Investment Zones focusing on Advanced Manufacturing.

 


 

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