Paris Air Show Opens with Stiff Upper Lip

The Paris Air Show opened Monday with subdued optimism. Projections of future business are tempered by a global economic crisis that has not only tightened credit for potential purchasers but also reduced demand as passenger and freight traffic have fallen off and defense spending has been cut back.

But a new 777 Freighter arrived from Boeing on Sunday ahead of the opening to join Air France's fleet. The 777 Freighter will be on display during the show, highlighting its fuel efficiency and cargo capacity. In May 2005, Air France as the launch customer ordered five of the fuel efficient aircraft. This is the second to arrive. The twin-engine plane has a cargo capacity of 113 tons with a range of 4,880 nautical miles.

Other customers may not be plentiful at the event. The worldwide slump in air cargo may reach 17 percent this year compared with 2008, the International Air Transport Association said last week. The world's airlines will collectively lose about $9 billion in 2009.

While Boeing last week cut back its forecast for air cargo growth over the next 20 years to approximately 1,300 planes and an average annual growth rate of 5.4 percent, the aircraft maker is going ahead with its new 747-8 freighter, which is now in final assembly in Seattle and is scheduled to make its first flight before the end of the year. The company anticipates delivery to first customers in the third quarter of 2010.

Louis Gallois, head of Airbus parent EADS, is predicting difficult times through 2010 and perhaps 2011.

The Pentagon cut its budget for weapons from $164 billion in 2008 to $131 billion in 2010.

Contact Thomas L. Gallagher at tgallagher@joc.com.

Robert W. Moorman contributed reporting to this article.