Dubai: Aircraft, engines and maintenance, repair and overhaul (MRO) deals from Middle East companies added almost $20 billion to the Farnborough Air Show tally this year, clearly demonstrating the region's increasingly dominant position in the global aviation industry.
Together, the two major aircraft manufacturers — Airbus and Boeing — won 237 jetliner orders worth $28 billion, coinciding with the International Air Transport Association's forecast that the industry will post a $2.5 billion profit in 2010, reversing two years of losses. It earlier estimated a loss of $2.8 billion.
The single largest aircraft deal that stole the show was Emirates' order for 30 Boeing widebody 777-300ER planes worth approximately $9.1 billion (Dh33.4 billion) at list prices. The region's largest carrier also signed a separate deal for $4.8 billion with Engine Alliance to power its previously ordered 32 Airbus superjumbo A380s with GP7200 engines.
"The world will start travelling again, there's plenty of traffic for everyone," said Emirates President Tim Clark.
Etihad Airways also placed an order worth $1.8 billion for 78 GEnx-1B engines from General Electric to power 35 Boeing 787s it ordered last year. It also signed a 15-year agreement with GE Aviation for the maintenance, repair and overhaul of these engines valued at more than $2.5 billion.
Make a mark
Air Arabia, the first regional low-fare carrier, did not fail to make its own mark at the show with a deal for CFM56-5B engines to power its 44 Airbus A320 family aircraft ordered in 2007.
The order more than doubles the airline's CFM56-5B powered A320 fleet and is valued at more than $620 million (Dh2,277 million) at list prices.
"Air travel demand is continuing to rise in the Middle East and it is becoming clear that international demand is returning as the global economy shows signs of recovery," Qatar Airways chief executive Akbar Al Bakr said at Farnborough as the airline moved ahead with new investments.
It purchased two Bombardier Global 5000 aircraft in a deal worth $90 million as part of plans to further develop its 12-month-old corporate jet subsidiary, Qatar Executive. An additional order for two Boeing 777-200LR aircraft followed, at a value of $501 million.
Meanwhile, Mubadala Aerospace, a unit of Mub-adala Development Company, made headway in MRO business, getting closer to its goal of developing a regional centre for aerospace expertise.
It signed a heads of agreement with Goodrich to establish a joint venture in the UAE to perform MRO work on aircraft landing gear.
It signed another MRO joint venture between Abu Dhabi Aircraft Technologies and Sikorsky Aerospace Services to form an Advanced Military Maintenance, Repair and Overhaul Centre (AMMROC). The Dh2.9 billion deal will help Abu Dhabi provide military aviation services.
Owner of Swiss company SR Technics, Mubadala signed an Integrated Component Solutions (ICS) contract worth Dh371.68 million with Thomson Airways, the UK's third largest airline.
Under the contract, which runs until 2015, SR Technics will provide component services for 45 aircraft in the Thomson fleet: 29 Boeing 757s and 16 Boeing 767s.
SR Technics signed another contract, with Qatar Airways, to modify the cabin layout of three Airbus A321 and two A319 aircraft.
Mubadala Aerospace's Abu Dhabi Aircraft Technologies (ADAT), the Middle East's largest independent aircraft technical solutions provider, secured a 10-year contract with flydubai to provide maintenance services for various fast track components of the airline's growing fleet of Boeing B737 aircraft. Additionally, Mubadala signed with Honeywell Aerospace, maker of avionics systems, to set up local repair and servicing facilities — making the Abu Dhabi company's two maintenance firms both authorised service providers for its avionics and mechanical components.
Internationally, Embraer, or Empresa Brasileira de Aeronautica, won 37 contracts worth $1.4 billion for its regional jets, the bulk of them from Flybe, Britain's biggest domestic airline, together with pre-orders for an additional 34 planes valued at $1.3 billion.
Among Western carriers, American Airlines said it will buy 35 Boeing 737s, Aeroflot is adding 11 Airbus A330 and Virgin America signed a contract for 40 A320s.
Airbus added an order for six A330s from Garuda Indonesia. The national carrier of Indonesia will begin taking delivery of its A330s in the fourth quarter of 2012.
SAT, the holding company of Berlin-based airline Germania, has firmed up a tentative agreement with Airbus for five A319s. Deliveries start next year. Additionally, Airbus announced a tentative agreement with Thai Airways for seven A330s.
— With inputs from Bloomberg and Reuters
