An outline contract agreed on Monday for the supply of 10 Airbus A320 aircraft to Yemen's national carrier is among the few highlights of this year's Dubai Airshow, noticeable for its lack of big deals. The organisers' hopes of beating the 155.5 billion dollars in orders chalked up at the last show in 2007 were fading fast as the show's second day produced only one big agreement, to follow the one major deal unveiled on the first day.
The memorandum of understanding between Yemenia Airlines and Airbus - worth 700 million dollars at catalogue prices - was the sole sizeable civil aircraft order announced on the second day of the monster biennal event. Airbus chief operating officer John Leahy said he expects the MOU to be firmed up within 30 days but Yemenia board member Saleh Alawaji said the deal still needs the "blessing" of the carrier's board.
The European aircraft maker also boosted its order book on Sunday with confirmation of a 2.9 billion dollar order by Ethiopian Airlines for 12 A350 XWB units. No other major announcements for aircraft purchase have been made at the show, which two years ago saw Airbus and its US arch-rival Boeing bag orders and letters of intent for at least 458 aircraft worth more than 75 billion dollars, mainly from Gulf carriers.
The number of exhibitors is up 10 percent at 890 and Allison Weller, director of show organiser F and E Aerospace, predicted beforehand that the value of orders would top 2007 level. "I am cautiously optimistic that the Dubai Airshow will signal a return to a healthy marketplace," she said. But the lack of robust civil aviation activity at the Dubai event comes as no surprise to analysts, as the industry continues to suffer the impact of the global financial crisis.
Airbus' chief Tom Enders acknowledged on Sunday that the aviation industry is in for a "challenging" two years, due to the world global economic slowdown, but he expressed optimism that the industry will make a come back. "I share the assumption that 2010-2011 will still be difficult years. Nevertheless, I am optimistic that we will get through this," Enders told reporters at the show.
"We are in a growth industry... We are used to cycles... We will get through it." The European group's big rival Boeing said on Monday that it expects the industry to start recovering by next year and with a return to profit for airlines by 2011. It expects an increase in aircraft demand by 2012. The US manufacturer also highlighted the steady growth of Middle East carriers, which have bucked the slowing trend and have potential for further expansion.