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Speaker 1: And what matters is that guy is in his super

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Speaker 1: Bowl moment, and that is that the Paris Air Show

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Speaker 1: well underway. My co host Guy Johnson is standing nearby.

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Speaker 1: He literally called us and he's like, look at all

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Speaker 1: the planes. He's talking at the Airbus ceo. The company

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Speaker 1: just announced it firmed up an agreement with Air India

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Speaker 1: for two hundred and fifty aircraft orders. It's a Bloomberg

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Speaker 1: first interview.

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Speaker 2: Guy over to you. Yeah, Alex, thank you very much, Dean.

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Speaker 2: That takes the total number of firm orders for Airbus

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Speaker 2: at this show to seven hundred and fifty. That's a

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Speaker 2: huge haul. And we're only on day two. It is

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Speaker 2: our last day here, is my last day here, and

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Speaker 2: I have to say the grand finale is speaking with

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Speaker 2: giom Foi, the Airbus ceo, Him Hi.

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Speaker 3: Yai, how are you today?

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Speaker 2: I'm very well welcome. It's great to be back. The

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Speaker 2: Paris Show is back underway, the first one we've had

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Speaker 2: since twenty fourteen.

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Speaker 3: How does it feel day?

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Speaker 4: I feel good. It's very dynamic. Everybody's here this year.

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Speaker 4: It's incredible. We didn't think six months ago that we

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Speaker 4: have such a wonderful show, so much positive energy, so

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Speaker 4: we're very happy to be at the show.

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Speaker 2: Let's talk about how good it has been. We've just

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Speaker 2: seen the confirmation. Alex was just talking about it. Seven

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Speaker 2: hundred and fifty firm orders. Now at the show, you've

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Speaker 2: got the Indigo order, and you've got the Air India order,

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Speaker 2: which we've just seen confirmation of. There is talk maybe

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Speaker 2: amongst those that are not ordering that this is turning

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Speaker 2: into a frothy market, that some of these airlines are

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Speaker 2: starting to overorder because they're worried about the availability of slots.

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Speaker 2: What do you say to those people.

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Speaker 4: For Indigo that was announce yesterday, this is a five

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Speaker 4: hundred planes order. That's the biggest order ever in terms

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Speaker 4: of number of planes. But that's for the long term

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Speaker 4: and we've seen with Indigo that they've been executing on

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Speaker 4: their plans. They're very successful in India. So these are

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Speaker 4: not speculative orders. These are orders for the real need

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Speaker 4: of the growth that we see in India. So I

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Speaker 4: think there is a lot of substance behind those orders.

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Speaker 4: It doesn't change the short term perspective on the ramping

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Speaker 4: of the production because our long term orders. So I

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Speaker 4: think it reflects the fact that planes are scarce resources,

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Speaker 4: but it also reflects growth that is a reality, and

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Speaker 4: it reflects long term perspective and planning of AirLand. So

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Speaker 4: I think this is a healthy perspective on the long

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Speaker 4: term future of aviation.

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Speaker 2: When we saw that order, one of the questions that

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Speaker 2: was asked was why is eb Us selling so many

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Speaker 2: planes to Indigo and hit me out of the logic,

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Speaker 2: you are tying up a huge amount of your manufacturing

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Speaker 2: capacity with one big order, an order that you could

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Speaker 2: have sold and broken up into component parts and probably

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Speaker 2: sold those slots of those aircraft for even more money.

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Speaker 2: Why one big order when you could have had lots

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Speaker 2: of smaller orders and probably made more I.

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Speaker 3: Don't think it's either or.

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Speaker 4: We've taken an order with Indigo for deliveries between twenty

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Speaker 4: thirty and twenty thirty five, so this is really a

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Speaker 4: long term.

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Speaker 3: Perspective where we still have a lot of space.

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Speaker 4: In our skylight, so the production is not sold out

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Speaker 4: for those years and it provides room for other orders

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Speaker 4: to come later. Now, Indigo has been a very very

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Speaker 4: reliable partner for Airbus and vice versa, so we want

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Speaker 4: to continue to stick to each other and continue that

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Speaker 4: very successful story in the future.

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Speaker 2: You talk about the fact that this is going to

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Speaker 2: be These are going to be aircraft that will be

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Speaker 2: delivered well into the twenty thirties. How far away do

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Speaker 2: you think we are from air Bus selling its last

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Speaker 2: A three twenty near We're.

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Speaker 3: Very far away from that.

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Speaker 4: It's going to be a very successful product for many,

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Speaker 4: many years to come.

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Speaker 2: It will be their frame.

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Speaker 3: I think.

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Speaker 2: I think if first, I think the first commercial service

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Speaker 2: was nineteen ninety. This this is an air frame that's

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Speaker 2: been around for a while, and we're getting near to

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Speaker 2: the point where we are going to be talking about

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Speaker 2: the next generation.

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Speaker 4: I think we are thought from the point where the

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Speaker 4: three twenty can go. But you're right in saying that

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Speaker 4: we need to plan for the next generation of planes.

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Speaker 4: We have a decarbanization roadmap that speaks for neutrality by

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Speaker 4: twenty to fifty and to reach that point we need

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Speaker 4: to continue to reduce the full burn very significantly. The

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Speaker 4: next stage will be with twenty to thirty percent less

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Speaker 4: fuel burn and therefore less.

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Speaker 3: YO two emissions.

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Speaker 4: We think this is going to come between twenty thirty

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Speaker 4: five to twenty forty four enter into service, So we're

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Speaker 4: already looking at technologies for that next wave of planes.

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Speaker 2: The next wave of planes, maybe the wave after that,

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Speaker 2: is likely to be based on a new engine architecture.

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Speaker 2: It could be ultrafan, it could be openfan. But what

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Speaker 2: we're going to be looking at is a starting point

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Speaker 2: with a new type of engine, and you're going to

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Speaker 2: have to build the airframe around that new setup. It's

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Speaker 2: a bit like the DA four hundred M. You built

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Speaker 2: a new airframe and a new engine. You had a

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Speaker 2: new engine at exactly the same time. When when you

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Speaker 2: extend that logic, the logic slightly takes us in the

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Speaker 2: direction of why don't you just vertically integrate so that

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Speaker 2: you can control what the engine technology is going to

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Speaker 2: look like, how that decision is going to be made,

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Speaker 2: and how the airframe is going to face around that,

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Speaker 2: rather than have the confusion of an engine manufacturer effectively

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Speaker 2: making a whole lot of decisions for you, and the

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Speaker 2: direction of travel in this conversation, if I get there,

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Speaker 2: eventually will be why don't you buy rolls for versus

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Speaker 2: engine business.

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Speaker 4: We're discussing about the next generation of a singular airplane,

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Speaker 4: and we are designing, we are developing, we are reviewing

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Speaker 4: the options with the engine manufacturer.

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Speaker 3: You refer to the four and M.

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Speaker 4: That just highlights the fact that we can cooperate between

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Speaker 4: engine manufacturer and aircraft two ems in an efficient way

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Speaker 4: and we can test options with one engine manufacturer and

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Speaker 4: test another option in other ideas with another one, so

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Speaker 4: it provides optionality for the aircraft manufacturer.

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Speaker 3: At the moment, we are well.

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Speaker 4: In the development of the RISE technology on the engine side,

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Speaker 4: but as well on the integration. You know that there

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Speaker 4: is a close cooperation between A and CFM on RISE

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Speaker 4: to see how this could deliver a very good solution

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Speaker 4: for this twenty to thirty percent fuel burn reduction, but

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Speaker 4: we're also looking at other options and when you don't

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Speaker 4: vertically integrate, you have this optionality.

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Speaker 2: If powering your competitors was the decide that they were

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Speaker 2: going to go with open fan technology, but they be

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Speaker 2: making the decision for you as well. Engine commonality is

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Speaker 2: a big feature of this industry.

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Speaker 4: What you're saying about going could apply to Albus and

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Speaker 4: we are in this cooperation with CFM, so we are

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Speaker 4: I think pacing the story on what's going to be

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Speaker 4: the next and.

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Speaker 2: It will be your decision.

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Speaker 4: Do you think, yeah, yeah, we're looking at ourselves. We

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Speaker 4: are anticipating into the future. We are investing in new technologies,

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Speaker 4: we're partnering with new partners, existing partners. We have a

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Speaker 4: very strong cooperation based on trust with CFM on the

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Speaker 4: Rise Engine. So we are moving forward at pace and

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Speaker 4: the others will have to do what they think is

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Speaker 4: appropriate for them.

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Speaker 2: We move forward, you're going to have to build much

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Speaker 2: more efficient aircraft because there's likely to not be much

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Speaker 2: self around. Is there going to be enough saff to

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Speaker 2: fly all the airplanes that you'll selling right now?

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Speaker 4: So we start from a very low point in terms

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Speaker 4: of use of SAFF. Today it's below one percent and

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Speaker 4: we want to becoming close to one hundred percent by

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Speaker 4: the twenty fifteen. So there are is two reasons why

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Speaker 4: we need to reduce fuel burn. Is because there will

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Speaker 4: be a limited quantity of SAFF at this at the

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Speaker 4: beginning before this industry is scaling up. But it's also

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Speaker 4: going to be a more expensive ful and if you

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Speaker 4: want to have an economic equation that works, you need

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Speaker 4: to reduce the fuel burn to continue to have tickets

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Speaker 4: that will be affordable. So these are two good reasons

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Speaker 4: to reduce very significantly the fuel burn of the airplane

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Speaker 4: of the future generation, and in spite of the growth

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Speaker 4: of aviation, growth in number of planes, having the emissions

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Speaker 4: of this sector going down, that's a big challenge.

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Speaker 3: Rising the quantity of SAFF is.

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Speaker 4: An ingredient, but to make it economically viable, each and

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Speaker 4: every plane needs to be burning fuel.

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Speaker 3: Let's stuff.

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Speaker 2: I've just been told I've got two minutes left. I'm

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Speaker 2: I'm able to a quick fire around with them for

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Speaker 2: a Is there enough demand for two engines on the

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Speaker 2: A twenty.

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Speaker 4: We will look at that question when we will be

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Speaker 4: considering the five hundred, which means the next version of

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Speaker 4: the two twenty. We are not yet there. We think

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Speaker 4: it makes a lot of sense to have one more

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Speaker 4: child in the family, the one hundred to three hundred

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Speaker 4: and the five hundred. I think we would be wrong

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Speaker 4: to be right too early. We're not yet at that

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Speaker 4: point because we're still romping up the initial phase of

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Speaker 4: the program. But when and if we get there, but

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Speaker 4: it's more when than if, then it will make sense

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Speaker 4: to have two engine options on that plane.

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Speaker 3: That's what we would like to consider.

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Speaker 4: Obviously, we need to have the engine makers agreeing on

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Speaker 4: the fact that it's a good idea, and again we

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Speaker 4: are not yet there.

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Speaker 2: Pratt ready is not convinced that it is a good idea.

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Speaker 2: It doesn't see necessarily the demand for such an idea.

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Speaker 2: But I guess it's soul supplier from our aircraft right now.

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Speaker 4: So they are they are having skin in the game today,

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Speaker 4: but obviously there are today's a partner on the two twenty.

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Speaker 4: We're very happy with the partnership, but I've been one

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Speaker 4: more playing in the family makes it a big family,

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Speaker 4: and there's maybe room for two engine makers at least.

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Speaker 4: That's what the customers, that's what the airline think, and

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Speaker 4: therefore I have sympathy for the idea.

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Speaker 2: Final quick question, what are we going to say the

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Speaker 2: twenty one ACCELR getting certification.

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Speaker 4: It's going to be entered into service in the second

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Speaker 4: quarter of next year. Enter into service Q two twenty

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Speaker 4: twenty four.

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Speaker 2: Girl, it's been a great pleasure, a grand finale. Thank

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Speaker 2: you very much in the fantastic to be back at

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Speaker 2: the parasarche A GAYM four A. The CEO of Airbus