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Airshow Ends with $14 Billion in Deals

DUBAI — The Dubai Airshow ended on a subdued but hopeful note, with a few last orders pushing the show’s final tally of contracts and purchase commitments incrementally higher to more than $14 billion.

Among these contracts announced on Friday were the sale of three helicopters worth $600,000 by the UAE’s Perla Aviation and a $40 million order from a unit of Dubai Aerospace Enterprise for aircraft wheels and brakes.

The show hatched no blockbuster deals, in contrast to its predecessor two years ago. Yet, the outcome of $14 billion in new business was a notable achievement, given the harsh economic conditions that have damped demand in most corners of the aviation industry.

As the event’s organisers and participants began closing down their booths and display stands, they were looking forward to bigger sales at the next show in 2011 – by which time many anticipate that the economy will be in full swing again.

“We anticipate sales pushing ahead more quickly for 2011, with industry sentiment genuinely predicting an upturn for international aviation…,” said Alison Weller, director for aerospace at F&E Aerospace, the show’s organiser.

“This was undoubtedly a busy show, and we anticipate validated registration reaching close to the 50,000 mark – which is excellent for a trade-only visitor event,” Weller said in a statement.

F&E Aerospace was still tabulating visitor numbers and data at the end of the day. The last show in 2007 attracted 850 exhibitors and about 45,000 visitors. Companies clinched $155 billion in orders that year.

The five-day show at Dubai Airport Expo reinforced the emirate’s role as an essential stop on the global exhibition circuit for aviation companies.

More importantly, it propelled the UAE further along the path to nurturing its own aerospace industry. The Mubadala Development Company signed a pact this week with US plane-maker Boeing Company to develop national facilities for indigenous research, training, repair and manufacturing of aviation components.

Boeing and its European rival Airbus SAS outsource a significant amount of parts production for their jetliners. China, for example, doesn’t just assemble Airbus A320 jetliners at a plant in the city of Tianjin but also produces key parts and sections for several models of aircraft for both Airbus and Boeing. The Mubadala deal with Boeing could be a step in a similar direction for the UAE, officials have suggested.

Perla Aviation, which owns the DBAerocopter company of Ukraine, announced three separate sales of its AK1-3 two-seater helicopter. Perla executive Tanya Rashenko confirmed the sales to customers in Pakistan, India and the UK.

“It has been an excellent show for us, with strong interest from throughout the Middle East, Africa, Europe and the USA,” Rashenko said in the end-of-show statement. “We are also negotiating on an additional three sales leads gained at the show which hopefully we can conclude in the coming weeks.”

DAE Capital, a unit of Dubai Aerospace Enterprise, ordered $40 million in wheels and carbon brakes for its planned fleet of 70 Boeing 737 jetliners. Boeing is to begin delivering single-aisle planes next year.

The final order tally grew by $1 billion from Wednesday’s total of $13 billion.

Abu Dhabi’s Mubadala Aerospace is the first company to have signed up for the 2011 Dubai Airshow, F&E Aerospace said.

Said Weller: “We have also been approached by a number of visitors who came to assess the show, have understood its potential and now want to return as exhibitors.”

bruce@khaleejtimes.com