International geopolitical tensions cast a shadow over the opening day of the Paris Air Show on Monday, with Israel accusing the French government of ordering the closure of several Israeli company booths.

On the business front, European aerospace giant Airbus finalized deals with Saudi groups, while its major rival Boeing was notably absent from the event, which runs through June 20 in Seine-Saint-Denis, just outside Paris.

The Paris Air Show remains a critical platform for aircraft and defense manufacturers to showcase their latest technologies.

Yet, against the backdrop of ongoing conflict in Gaza and military confrontation between Israel and Iran, organizers closed the four main booths of Israeli companies at the request of the French government, according to Israel's Ministry of Defense, which condemned the move as "an outrageous and unprecedented decision."

A source familiar with the matter said the directive was issued because the affected Israeli companies failed to comply with a French security agency's instruction to remove displays of offensive or kinetic-energy weapons from their stands.

On the show floor, booths belonging to Elbit Systems, Rafael, IAI, and Uvision were shuttered and cordoned off with black panels. Three smaller Israeli stands not displaying weaponry, along with a booth from the Israeli Ministry of Defense, remained accessible.

"This outrageous and unprecedented decision is the result of political and commercial considerations. It comes as Israel is waging a necessary and just war to eliminate the nuclear and ballistic threat facing the Middle East, Europe, and the entire world," the Israeli Ministry of Defense said in a statement.

The ministry further claimed that France was excluding "weapons that compete with French industries. This attitude is all the more shocking given that Israeli technologies have delivered impressive and precise results in Iran."

Paris Air Show organizers said in a statement they were in talks to help the parties find "a favorable resolution" to the dispute.

BOEING ABSENT

Two visiting American officials also criticized the French decision.

Speaking to reporters in front of the closed Israeli booths, Republican Arkansas Governor Sarah Huckabee Sanders called the move "pretty absurd," while Republican Senator Katie Britt described it as "short-sighted."

During a brief opening address on Monday morning, joined by Airbus CEO Guillaume Faury--who also heads the French aerospace and defense industry association GIFAS--French Prime Minister François Bayrou sidestepped the controversy and instead emphasized the need to "Europeanize" efforts in aeronautics so that France would not be "alone" in bearing the burden.

The aerospace sector has been shaken by the conflict between Iran and Israel, which has forced airlines to cancel or reroute thousands of flights.

Industry leaders are also grappling with uncertainty stemming from former U.S. President Donald Trump's unpredictable tariff policies.

Many expect the new tariffs to impact aircraft, engines, and spare parts, disrupting global supply chains, raising production costs, and straining international partnerships.

Boeing CEO Kelly Ortberg and Boeing Commercial Airplanes chief Stephanie Pope canceled their trips to Paris, with the American manufacturer scaling back its presence at the Air Show as it supports the investigation into the deadly Air India crash in India.

Boeing is keen to avoid negative publicity as it emerges from a series of safety, industry, and corporate crises triggered by fatal accidents involving its 737 MAX model.

New aircraft orders are anticipated during the show, where European politics also play a significant role.

Sources told Reuters that Poland is expected to announce that Airbus has won a landmark deal to sell about 47 A220 aircraft to national carrier LOT, part of a broader reset in relations between Poland and France, home to Airbus headquarters.

Airbus also announced an order from Saudi aircraft lessor AviLease for 30 A320neo jets and 10 A350F freighters, a deal estimated by Cirium Ascend analysts to be worth around $3.5 billion.

The European manufacturer further confirmed a "firm order" from Saudi airline Riyadh Air for 25 A350-1000 aircraft.

(Reporting by Paul Sandle, Tim Hepher, Steven Scheer, Giulia Segreti, and Florence Loève; written by Benjamin Mallet, Camille Raynaud, and Florence Loève; edited by Sophie Louet)

By Joe Brock, Tim Hepher, Giulia Segreti, and Paul Sandle