Tuesday 19 June 2018

$15bn Emirates order to kickstart Dubai show

Dubai, November 13, 2011

A Boeing airplane order worth up to $15 billion from host airline Emirates looked set to fire up the Dubai Air Show on Sunday as Gulf airlines expand in the face of growing fears over the world economy.     

Reuters reported on Friday that the airline was in negotiations to buy between 30 and 50 Boeing 777 mini-jumbos, expanding its role as the world's largest operator of Boeing's  most profitable plane.      

Emirates, which has led efforts by Gulf-based carriers to challenge European and Asian carriers by establishing the region as a major East-West hub, scheduled a news conference for 0900 GMT. Boeing and Emirates declined to comment.     

Gulf airlines and lessors are set to splash out a total of over $20 billion on Airbus and Boeing jets at the November 13-17 air show, underscoring the region's role as the industry's chief paymaster amid Europe's worsening sovereign debt crisis.     

Qatar Airways is expected to place a $6.5-billion order for 50 fuel-saving A320neo jets and five A380s from Airbus, and Kuwait lessor Alafco plans to boost a provisional order for 30 Airbus A320neos, industry sources said.     

The largest ever Middle East air show was due to be inaugurated on Sunday by the ruler of Dubai Sheikh Mohammed bin Rashid al Maktoum.     

A muted air show two years ago came days before Dubai lurched into its own property and financial crisis in 2009, but the city state has been recovering after a bailout from neighbouring Abu Dhabi.     

Demand for passenger aircraft has been remarkably robust led by rising numbers of middle classes in Asia and the Middle East and a shift of economic power from the West, but some analysts fear a contagion from Europe's spiralling debt crisis.     

"Nothing goes up forever but we really believe the demand for airplanes is driven by world GDP," Boeing Commercial Airplanes chief executive Jim Albaugh said on the eve of the show.     

"It goes up by about one and a half times GDP, and while you have spikes .. the long-term direction is pretty positive."           

Increasing competition to sell military hardware to Gulf states amid rising tensions over Iran's nuclear activities also dominated the start of the show.     

In a blow to France, an $11 billion contest to sell fighters to the UAE heated up on the eve of the event when the Eurofighter consortium disclosed it had been asked to present its Typhoon warplane to the country's top military.     

A spokesman for the consortium from Britain, Germany, Italy and Spain confirmed a report on the briefing in industry publication Flightglobal.com, but declined further comment.     

The briefing by UK officials took place in October in response to a request from the UAE, which has held long-running talks with France over a purchase of up to 60 Dassault-built Rafale fighters.      The move injected unexpected drama into the military side of the Dubai Air Show, which will feature rival flying displays by both jets.     

Dassault  Aviation Chief Executive Charles Edelstenne shrugged off the assault by the Eurofighter club which France backed away from in the 1980s to concentrate on developing its own independent successor to the Mirage.     

"That's very good, I'm happy," he told Reuters, walking briskly among displays of military U.S., European and Russian military hardware.     

Asked if he was disappointed about the decision to bring in a potential new bidder, he said, "No".  The UAE has been in talks with France since 2008 but discussions have been subjected to occasional disruption and  the UAE has also enquired about the Boeing F/A18 Super Hornet.     

President Nicolas Sarkozy has made it a priority to find a foreign buyer for the multi-role Rafale, billed as one of the most effective but also one of the most expensive fighter jets in the world.     

Analysts say rising geopolitical tensions surrounding Iran could lead to a spike in defence orders. - Reuters

Tags: Airline | Boeing | Dubai Air Show | Emirates order |

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