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“It is Jefferies strong view that we’re going to have to see strong consolidation…on the aerostructure side to maintain this build cycle,” he added.
Baxt said that massive cuts in defense spending by national governments, and particularly the U.S., were changing the landscape of aeronautical economy in stark contrast with the flourishing private sector.
I don’t think [we’ve experienced] a show with a bigger divide between the defense world and the commercial aerospace world. The defense world is set for cuts . Massive cuts, sustained and significant by the world’s most significant buyer,” he said.
“[However] on the commercial aerospace side” he added, “we’ve got 9500 airplanes on order with seven years of backlog.”
Speaking to CNBC ahead of the opening of Farnborough International Airshow by Prime Minister David Cameron, Baxt said that the atmosphere was exciting at this year’s show as two aeronautical giants, Boeing and Airbus, are both thought to be eyeing one particular model.
"This year we do strongly believe it is going to be the year of the Boeing 737 Max, Boeing has indicated ending the year with potentially a 1000 orders and at this show Jefferies expects to see up to 400 commitments turn into orders for the Max" he said.
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