* After recent record years, fewer jet orders expected
* Top-selling Airbus jet misses show after engine snags
* Boeing (NYSE:BA) to show rival 737 MAX but faces market-share worry
* Lockheed F-35 makes delayed international debut
By Tim Hepher and Victoria Bryan
FARNBOROUGH, England, July 8 (Reuters) - The aerospace
industry is preparing to celebrate major milestones at the
Farnborough Airshow next week as Boeing turns 100 and Canada's
Bombardier marks the entry into service of a new jet designed to
challenge the duopoly of Boeing and Airbus.
The July 11-17 event, which alternates with the Paris
Airshow as the industry's premier showcase, will see new jets
displayed including the world's most expensive warplane, the
Lockheed Martin (NYSE:LMT) F-35, but is not expected to produce the flood
of civil jetliner orders seen in previous years.
After a record multi-year sales bonanza for efficient new
models, sellers remain on the road drumming up more business for
the show. But analysts say many airlines are reluctant to make
decisions as doubts over the economy disrupt the traditional
self-confidence and big money usually displayed at such events.
"The issue is how do you as a manufacturer survive the ill
winds blowing from the outside world," said Richard Aboulafia,
vice-president at Virginia-based consultants Teal Group.
"It is getting grimmer out there."
Despite the uncertainties - including Britain's shock
decision last month to leave the European Union - jetmakers are
expected to confirm bullish 20-year outlooks. They face some
doubts over key Asian demand, though there could be surprise
orders from one or two of the region's low-cost players.
"GDP and traffic growth are pretty positive but there are
unknowns," said Eric Bernardini of consultancy AlixPartners.
"If China's slowdown spreads to the rest of Asia, the
neighbouring countries suffer and then traffic in Asia could
slow and that could lead to deliveries being delayed or halted
to some Asian companies."
Already there have been signs of some order deferrals but
Airbus and Boeing have plenty of cushion in their backlogs.
There are particularly concerns over a possible glut in
wide-body aircraft later this decade, while smaller planes are
still in demand and are expected to dominate orders at
Farnborough.
AIRBUS NEO 'NO SHOW'
While the latest generation of wide-body jets showcased
advances in carbon-fibre airframe construction, the focus of
innovation in small ones is led by the engine makers.
Airbus so far leads in a fierce market battle triggered by
the latest engine upgrades, but delays in engine deliveries from
Pratt & Whitney UTX.N have left some 25 incomplete jets
stranded on the ground in Toulouse.
The delays mean the A320neo will have to sit out the
Farnborough Airshow and will not be parked among rival models
that for the first time include the rival Boeing 737 MAX.
Compounding its woes, Airbus was struggling on the eve of
the show even to obtain permission for its back-up plan to fly a
pair of the hot-selling jets over the Farnborough gathering,
following a tightening of formation display rules that also
affects Britain's Red Arrows.
Hinting at further order announcements, though, an Airbus
spokesman said the A320neo would still be "all over the show."
By contrast, Boeing plans to fly its rival 737 model, but
faces potentially costly economic questions over the design of
the 737 MAX family, which has been outsold by the A320neo.
Delegates will be watching for any updates on plans to beef
up the smallest version of the MAX and add a larger new version
called the 737 MAX 10.
Airbus and Boeing generally split the market for narrowbody
jets which generate most of the industry's revenue, and without
which they could not afford to invest in bigger planes.
That lifeline is increasingly being challenged by new
producing nations including Canada, China and Russia.
Canadian manufacturer Bombardier CSeries will go into
service on Friday, as Boeing celebrates its centenary, but the
plane has failed to make a dent so far in sales of the two
industry giants.
Doubts are meanwhile increasing over the future of the
world's biggest jetliner, the Airbus A380, while Boeing is
trying to prop up a struggling fighter jet business.
Still, U.S. and European weapons announcements could play a
bigger role at this year's show, given the expected drop in
commercial orders and higher spending in eastern Europe in the
wake of Russia's annexation of Crimea from Ukraine.
The show follows a NATO summit held in Warsaw, Poland, where
allies are laying out plans to reinforce NATO's eastern flank,
plans that are fuelling arms sales across the region.
Although the show usually doesn't generate a lot of military
headlines, Boeing hopes to reel in two large UK helicopter and
maritime surveillance orders, while Lockheed Martin is hoping to
finalise one of the Pentagon's largest single contracts ever, a
deal for 160 F-35 that could be worth $15 billion.
The F-35 made an international debut at the Royal
International Air Tattoo in western England on Friday, after
missing a scheduled appearance two years ago due to engine
trouble, and is expected to demonstrate its angular,
radar-evading profile in a display at Farnborough next week.