Posted on Thu, Nov. 19, 2009

e-mail	print	RSS	reprint
AIM	Digg it	del.icio.us	Facebook

Dubai Airshow orders less than 10 percent of 2007's

BY ADAM SCHRECK

Associated Press

DUBAI, United Arab Emirates — Airbus said Wednesday it agreed to sell six jetliners to newly created Senegal Airlines, giving the European planemaker bragging rights to more than $5 billion worth of orders at a subdued Dubai Airshow.

A slumping aviation market stemming from the economic downturn has kept Airbus and its U.S. rival Boeing Co. from announcing any of the blockbuster deals seen at the last Dubai show two years ago, though both have benefited from the modest expansion plans of growing airlines in the developing world.

Senegal Airlines' deal was a letter of intent — effectively a promise to buy — four A320 and two A330 planes. Airbus valued the deal at $670 million, though buyers typically negotiate discounts below the list price.

Altogether, Airbus said it signed more than $5.3 billion in deals over the first four days of the weeklong show. That figure includes $3.6 billion in firm orders, and another $1.7 billion for 18 planes covered by the type of agreement in the Senegal deal.

Senegal Airlines is the new national carrier of the West African country, replacing Air Senegal International. It plans to start service early next year from the Senegalese capital Dakar.

Airbus' firm orders included two double-decker A380 "superjumbos" that will be packed with a record 840 economy-class seats for Air Austral, and a dozen of the "extra wide-body" A350-900s for Ethiopian Airlines.

"We had a good airshow," chief operating officer John Leahy said in a statement Wednesday, signaling additional Airbus orders were unlikely. He cautioned that the "industry is not out of the woods yet" and faces "a difficult winter ahead."

Boeing has announced two aircraft orders at the show, which ends today. The Chicago-based company signed deals Tuesday to sell 11 737-800 jetliners to Algeria's government-run Air Algerie and Tassili Airlines.

Marty Bentrott, Boeing senior vice president in charge of sales for the region, said any more "significant orders" were unlikely.

Organizers say manufacturers have sealed $13 billion of orders at this year's show. That is less than a tenth of the $155 billion worth of deals signed at the 2007 show.

Last time around, orders were driven largely by fast-growing Gulf carriers such as Dubai's Emirates and Qatar Airways. While those airlines are still growing, their sales have taken a hit from the drop in business travel. They also have to digest hundreds of planes already booked from both of the major manufacturers.

Military aerospace companies also have seen only a trickle of deals at this year's show.

     Showing: Oldest first Newest first Most-recommended first Least-recommended first

@Nyx.AuthorDisplayName@ wrote on @Nyx.PostedAtTime@:

@Nyx.CommentBody@

@Nyx.Recommender@ @Nyx.AbuseReporter@