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Indonesia’s Lion Air has placed a $24-billion (U.S.) order this year for new aircraft.
Indonesia’s Lion Air has placed a $24-billion (U.S.) order this year for new aircraft.
(BEAWIHARTA/REUTERS)

BREAKINGVIEWS

Rising aircraft sales point to economy losing altitude

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks. Click here to read more international insights.

The aviation industry’s incurable optimism is like a seat-belt sign for investors. That’s the conclusion of a Breakingviews study of global airline orders and economic growth. Aggressive aircraft orders have an inverse relationship with expansion in global GDP a year later. If that affiliation holds, big orders by Asian airlines point to rising risks of economic turbulence next year.