Dh69b in deals sealed at Dubai Airshow

Dubai: Defying industry challenges, Dubai Air Show saw airlines booking almost Dh70b in orders on the opening day, with Emirates placing the biggest order of the day worth $15.1 billion (Dh55.4 billion) in list prices for 40 Boeing 787-10 Dreamliners.

Boeing also bagged a $1.9 billion (Dh6.9 billion) order from Azerbaijan Airlines for five 787-8 Dreamliners and a commitment to purchase two large freighters, with the freighter commitment to be finalised at a later time. Azerbaijan Airlines also announced it will be the launch customer for the 787 Landing Gear Exchange Program whereby Boeing Global Services will provide the carrier with a lower-cost solution for overhauled and certified landing gears for its Dreamliner fleet.

The day saw UAE Ministry of Defence, too, signing Dh6.5 billion in deals on first day of the air show, including a Dh6 billion deal with Lockheed Martin to upgrade its  80 F-16 fighters to the latest standards, along with logistics and training

The biennial air show was opened by High Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. He was accompanied by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the Dubai Executive Council, and His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.

“Today we opened the Dubai Air Show at Al Maktoum International. This year’s is the largest exhibition since the show launched in 1989, with 1,200 civil and military aviation companies, 260 official delegates and 72,000 aviation specialists attending,” wrote Shaikh Mohammad on Twitter following his visit.

Referring to the Sunday’s order as a “long-term commitment” Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and CEO of Emirates Airline and Group, said it will “support hundreds of thousands of jobs not only at Boeing but also internationally,” adding that the announcement speaks “of our confidence in the future of the UAE and the region.”

He said that the order will take Emirates’ total wide-body aircraft count with Boeing to 204 aircraft worth over $90 billion.

The 2015 Dubai Air Show saw around $37.2 billion (Dh136.5 billion) in deals.

Dh6.5 billion deal with Ministry of Defence

The UAE Ministry of Defence signed Dh6.5 billion in deals on first day of the Dubai Airshow on Sunday.

This includes a Dh6 billion deal with Lockheed Martin to upgrade its  80 F-16 fighters to the latest standards, along with logistics and training. This puts the total number of deals signed at the Dubai Airshow to Dh61.9 billion so far.

Emirates places $15.1 billion order

Emirates on Sunday signed a $15.1 billion (Dh55.4 billion) commitment to buy 40 Boeing 787-10 Dreamliners. Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and CEO of Emirates Airline and Group, said the delivery for this aircraft will begin 2020 onwards.

“Some of these will be used to replace the older aircraft which will retire in the next few years,” he said, adding that it will keep Emirates’ fleet “always young”.

. @HHAhmedBinSaeed: “It has always been @Emirates’ strategy to invest in the most advanced and efficient aircraft, and today’s orders reflect that.” #DAS17 pic.twitter.com/v4FKAUqEMm

— Emirates airline (@emirates) November 12, 2017

Commenting on 35 years of partnership between Boeing and Emirates, Kevin McAllister, executive vice president of The Boeing Company and president and chief executive officer of Boeing Commercial Airplanes (BCA), Emirates today is the largest operator of the 777-300 ER, the launch customer of 777X, “and we are happy to have Emirates join the 787 family." 

The order was signed in the presence of High Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the Dubai Executive Council. Read the full story

Our firm order for 40 @Boeing 787-10 Dreamliners takes our total wide-body orders with Boeing to 204 aircraft. #DAS17 pic.twitter.com/8wcsfB64LH

— Emirates airline (@emirates) November 12, 2017

Meeting an Emirati teen picked by Nasa

Among the visitors spotted at the Dubai Airshow was 15-year-old aspiring astronaut Alia Almansoori.

The Emirati teen's experiment was recently picked by Nasa to be sent on a rocket headed for the International Space Station.

Aerial show

Livening up the Dubai skies, some of the world's best pilots treated Dubai Air Show visitors to an aerial display. Watch the best pilots in the world show off their skills at the Dubai Airshow Flypast. More details and videos here

Shaikh Mohammad Bin Zayed visits exhibits

The high-profile visitors also included His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, and Shaikh Hazza Bin Zayed Al Nahyan, Head of State for National Security Advisor.

Shaikh Mohammad Bin Rashid toured the air show where he was received by Shaikh Mohammad and Shaikh Hamdan. 

Shaikh Mohammad opens Dubai Airshow

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, officially opened the Dubai Air Show on Sunday, touring the various stands and talking to exhibitors.

He was accompanied to the biennial show by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince and Chairman of the Executive Council. 

Shaikh Mohammad, Shaikh Mohammad Bin Zayed and Shaikh Hamdan at the Dubai Air Show.

The spectre of slow global growth and increasing capacity towards improving productivity and efficiency are expected by analysts to be among the main trends affecting the show this year as the five-day event gets going on Sunday morning.

RT @HSajwanization: #Watch | @HHShkMohd #UAE Vice President and Prime Minister, Ruler of #Dubai and HH @HazzaBinZayed inaugurate #Dubai Air Show 2017 #DAS17 #DAS17inthenews @DubaiAirshow

pic.twitter.com/DY0tPZ3Cjn

— Dubai Airshow (@DubaiAirshow) November 12, 2017

For the 1,200 exhibitors present at the show, that will mean fewer deals than previous years.

Around $37.2 billion (Dh136.5 billion) worth of deals were signed at the Dubai Air Show in 2015, nearly one fifth of the more than $200 billion worth of deals signed in the previous version of the show in 2013.

Emirates unveils new cabins

The first big announcement of the event came when Emirates, Dubai’s flagship carrier, unveiled its new first class, business class, and economy class cabins. It did not however, announce a deal with manufacturer Airbus for a raft of new A380 jets, as many expected.

There were expectations from attendees that the deal for nearly 40 aircraft, first reported by Reuters, may still come on Sunday. It would be worth as much as $16 billion at list price.

Analysts say that Airbus is in need of a boost following sluggish growth this year compared to rival Boeing, as carriers opt for smaller, more efficient jets.

“[I expect to see] fewer deals than previous years, primarily because many orders are already in place, though Airbus will be hoping for a big ticket order for more upgraded A380s by Emirates,” said John Strickland, aviation expert and director of air transport consultancy JLS Consulting.

“More modest growth and concern about the political challenges faced by the region and globally [are likely to be the main trends], all of which can impact airlines and demand for aircraft,” Strickland said.

Boeing earlier also said it is looking forward to some orders firming up at the air show. The American aircraft manufacturer will be displaying its first 787-10X test aircraft.

The 2013 edition of the Dubai Airshow saw bulks of orders from various airlines, with Emirates, for example, placing its largest ever order at that show for a total of 200 aircraft — a mix of Airbus and Boeing — at a combined value of $99 billion.

Similarly, Etihad Airways announced its largest fleet order of 199 aircraft and 294 engines in a $67 billion deal at the Air Show in 2013. The order included 87 Airbus and 56 Boeing aircraft, with another 56 options and purchase rights.

Saj Ahmad, chief analyst at StrategicAero Research, said that while he didn’t expect deals this year to eclipse those in 2013, there just may be enough activity to beat the 2015 tally. 

According to Ahmad, the biggest challenge to growth will be excess capacity from airlines.

“The key theme for me this year will be turning capacity into profitability. While Emirates’ first half results have shown a superb turnaround, the reality is that there are still too many fringe players in the GCC...” he said.

Emirates on Thursday reported Dh1.7 billion in net profit, a 111 per cent increase year-on-year as seat load factors improved and the carrier cut capacity on some routes.

Event to focus on output

The Dubai Airshow has had notoriously bad luck with weather in the past. This year, the cloud of slower global growth is likely to turn eyes away from building capacity towards improving productivity and efficiency.

And analysts expect those to be among the main trends affecting the show this year as the five-day event opened on Sunday.

For the 1,200 exhibitors present at the show, that will mean fewer deals than previous years.

Around $37.2 billion (Dh136.5 billion) worth of deals were signed at the biennial show in 2015; nearly one fifth of the more than $200 billion worth of deals signed in the previous version of the show in 2013.

“[I expect to see] fewer deals than previous years, primarily because many orders are already in place, though Airbus will be hoping for a big ticket order for more upgraded A380s by Emirates.

“More modest growth and concern about the political challenges faced by the region and globally [are likely to be the main trends], all of which can impact airlines and demand for aircraft,” said John Strickland, aviation expert and director or air transport consultancy JLS Consulting.

Deals in 2013

The 2013 edition of the Dubai Airshow saw bulks of orders from various airlines, with Emirates, for example, placing its largest ever order at that show for a total of 200 aircraft — a mix of Airbus and Boeing — at a combined value of $99 billion.

Similarly, Etihad Airways announced its largest fleet order of 199 aircraft and 294 engines in a $67-billion deal at the air show in 2013. The order included 87 Airbus and 56 Boeing aircraft, with another 56 options and purchase rights.

And some of those aircraft ordered then are yet to be delivered. But that’s not to say that manufacturers in the industry will leave the show empty-handed.

Emirates, which recently received its 100th A380, said earlier this month that it hopes to order more of the Airbus super-jumbo at the air show, Reuters reported. Take an exclusive look at Emirates' new First Class cabins, unveiled at the air show.

And as Airbus’ veteran sales chief, John Leahy, prepares to retire, he is expected to make at least one more significant A380 order, likely at the show and from Emirates, a Reuters report said.

Boeing earlier also said it is looking forward to some orders firming up at the air show. The American aircraft manufacturer will be displaying its first 787-10X test aircraft.

Saj Ahmad, chief analyst at StrategicAero Research, said that while he didn’t expect deals this year to eclipse those in 2013, there just may be enough activity to beat the 2015 tally. 

Ahmad pointed that the biggest challenge will be excess capacity from airlines.
“The key theme for me this year will be turning capacity into profitability. While Emirates’ first half results have shown a superb turnaround, the reality is that there are still too many fringe players in the GCC...” he said.

Emirates on Thursday reported Dh1.7 billion in net profit, a 111 per cent increase year-on-year as seat load factors improved and the carrier cut capacity on some routes.

Growth areas

Deals aside, this year’s air show will focus on growth areas and new sectors in the aviation industry including unmanned aerial systems, airport solutions, space, and cargo.

Organisers behind the event said last month the show will highlight the future of travel, including space travel and new technology.

Meanwhile, low-cost carrier flydubai will showcase its new 737 MAX aircraft, which will be displayed for the first time in the Middle East and is the first of that model flydubai is receiving.

Emirates unveiled its new First Class cabins for the newly configured 777-300ER, while Etihad will be demonstrating a new in-flight connectivity system that will be introduced in partnership with Yahsat and du.

Around 72,500 visitors and 1,200 exhibitors are expected to attend the Dubai Airshow this year. The last edition of the event drew just under 63,000 visitors and 1,003 exhibitors.