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 plane maker 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, plane makers 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.

[Aljazeera]

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