Review Of The Dubai Air Show 2007

The 10th Dubai Air Show.

Having planned to visit many months ago, the trip for me may have been routine, but the event that took me there was a mix of glee enmeshed with a sense of “wanting more“. Much more.

There’s no doubt that the event was a success.

Not just for the host nation, the UAE, or indeed, solely for the host city, Dubai – the show was a success for all exhibitors and participants alike.

(All images are copyrighted and owned by BOEING777 and FleetBuzz.com )

From the very start and being in such close proximity to royalty, the show opened with UAE Vice President and Prime Minister of the UAE and Ruler Of Dubai, His Highness Sheikh Mohammed bin Rashid Al-Maktoum was indeed a privilege.

Kicking off the show was home airline, Emirates. It inked deals worth billions with both Airbus and Boeing.

Not only had it decided to order 70 Airbus A350’s, it firmed up it’s announcement for 8 A380’s from Le Bourget and added another three, making a total of 11 to be added to its already burgeoning Airbus collection.

This deal marks the biggest in civil aviation history at over $34bn. But then again, when you also throw in the fact that the opening day of the show also smashed records for deals done on one day at any air show (valued at over $50bn), it’s hardly surprising that Emirates wanted to be at the very forefront of such news.

Emirates too, placed an order for 12 Boeing 777-300ER’s and will now make the airline the largest operator of the 777 family. This order was known months ago but only announced to the press and media at the show…

Speaking about the decision to opt for the A350, HH Sheikh Ahmed bin Saeed Al Maktoum said that “the A350 was the most suitable aircraft for our type of mission”.

“Once again, Emirates is making aviation history”, he went on.

“Emirates’ total order book now stands at 246 aircraft, all wide body, and worth over $60bn. This is a massive investment which reflects our confidence in the future of air transport and our confidence in Dubai.”

President Tim Clark gave this blunt assessment:

“The 787-9 wasn’t suitable for us and the 787-10 wasn’t available to us”.

Engine maker Rolls Royce snared the larger tranche of the Emirates blockbuster orders with GE winning by default on the 777-300ER and also on the A380 via its Engine Alliance with rival Pratt & Whitney.

Saudi low cost airline NAS Air firmed up a deal to take 20 Airbus A320’s, while national carrier Saudi Arabian placed its first order with Airbus for years with a deal also for A320’s. Egyptian startup airline, Nile Air signed an MoU for nine A321’s.

While Boeing didn’t announce any new orders on the opening day, Qatar Airways finally decided to muster in on its rival Arab airlines press feeding frenzy by formally announcing the 787 deal that was widely reported over six months ago.

During the press conference itself, Akbar Al-Baker, CEO of Qatar Airways, seemed slightly uneasy, not least because some of the budding photographers were not listening to him as he repeatedly asked them to move from the front row of seats being reserved for HRH King Hamad bin Khalifa who was on his way up to the conference room with his entourage.

Al-Baker also revealed that the airline was behind 22 previously unidentified orders for 777’s.

(Click here for video of the Boeing/Qatar Airways press briefing)

Luckily for Scott Donnelly and Scott Carson, most of the questions were levelled at the Qatar Airways CEO, who, while happy to answer, was displeased somewhat that his US counterparts were not being questioned as he was.

Geoff Thomas (from ATWOnline) and I jovially quipped how we both wanted to ask why bother announcing the 787 deal when its been known for months - but we agreed that the timing wasn’t right and Al-Baker was very tense already.

Image courtesy of Boeing

Bizarrely, Al-Baker said that operating both 787’s and A350’s does not constitute “a mixed fleet”. He also brushed aside concerns that the airline was emulating Emirates and not being innovative enough, to which he reminded his audience that Qatar Airways was the only five star rated airline in the Middle East.

Since when did that mean anything?

Perhaps he’d be wise to see which hub has most traffic. Even more bizarre was his traffic target for the New Doha International Airport, due to be fully operational within a few years. Upon completion, it will still account for less than half the potential capability that Dubai International will have (est. 75m).

What then, of Al-Maktoum International Airport, which will cater for up to 120m passengers per year?

The task is certainly uphill, but the Qatar Airways boss is definitely looking at the very long term, with a desire to keep a fleet of no more than five or six years before replacing older jets. (Singapore Airlines anyone?!)

While Emirates stole the limelight on day one, the surprise out of the hat was indeed Dubai Aerospace Enterprise (DAE).

Not only was its intent to purchase from both Airbus and Boeing a surprise for those that were not in the know, but it sent out a very clear message to the likes of its US-based rivals, GECAS and ILFC – that more large orders are waiting in the wings.

For starters, Farnborough 2008.

Where 2008 will undoubtedly see slowdown in orders across the board, do not be surprised to see DAE make a huge splash again at Farnborough. Their statement of intent was clear – they will not rest until they become the number one lessor.

The airplanes ordered at the show comprised 70 Airbus A320’s and 30 A350s, alongside 70 Boeing 737’s, 5 747-8F’s, 10 777-300ER’s and 15 787’s.

For what its worth, a deal is also close between Boeing and DAE for the procurement of 747-8I’s too.

Talking of the 747-8I, while speaking to Geoff Thomas at the show, we concurred that Emirates will eventually select the airplane.

Scott Carson may have said that he didn’t foresee any orders for the -8I by the end of 2007, however, do not be surprised to see new “unidentified” orders for the model hit Boeing’s order books.

A senior source within Emirates assures me that the range is “no longer an issue”, paving the way for an announcement at Farnborough next summer.

Moving away from Emirates, Qantas also got in on the act at the show and announced a massive order.

The Australian airline ordered 31 Boeing 737-800’s and 68 Airbus A320/A321’s for its low cost offshoot, Jetstar. Purchase rights on a further 40 jets was also taken. Deliveries of the A320/A321 start February 2008 with the 737’s joining the fleet from 2009 onwards over a six year period.

The A380 has struggled to sell over the last three years, and the “jinx” was broken somewhat with the September 2007 order by British Airways. Aside from Emirates, one VIP A380 was sold to HRH Prince Alwaleed Bin Talal another 2 jets being sold to Al Jaber Group, which will also be taking 2 A318 Elite jets.

The Dutch airline, Transavia, completed a deal for 7 Boeing 737’s while Pakistani carrier Airblue confirmed a long held LOI for 8 A320’s. Ominously missing was Airblue’s prior intention to acquire two A330-200’s. Sources within the airline declined an interview would only state that “discussions were ongoing”. Oman Air firmed up a mix of A330’s, and is believed to be in negotiations with ALAFCO and LCAL for 787’s.

Dubai based LCAL also surprised most with a new 787-8 order too. LCAL President, Steve Clarke just couldn’t keep that smile off his face during the briefing. Speaking to him afterwards, he remarked that any airline chief would be equally pleased if they had struck such a fruitful and positive deal with Boeing.

Well, that’s the review of some of the shows major deals done, as I’m sure many will already be aware of the deals that have been taking place and those that will be finalized shortly.

Aside from the warm sunshine, and having visited the UAE and Dubai countless times, I left the country in a somewhat despondent and dejected mood. That sense of wanting more came rushing back.

Don’t get me wrong, the show itself was marvellous. From the hospitality of the Boeing staff that were with me from the moment I landed in Dubai until I left, to the sultry smiles and dinners I had with various NAS Air and Emirates cabin crew, there was definitely something missing.

While the Dubai Air Show 2007 has undoubtedly been the most successful since its inception, the move to a dedicated arena within Al-Maktoum International Airport (JXB) at Jebel Ali in 2009 will no doubt give the event a bigger leap than has been on show this past week.

Aside from the Qantas news, what the Dubai Air Show lacks is true international appreciation and participation from all corners of the Earth.

One only need to look at the biennial and alternating shows between Farnborough and Le Bourget to see that Dubai’s showpiece rested largely on Emirates, DAE and Qatar Airways, with a mix of regional low cost carriers thrown in for good measure.

I don’t recall seeing a single airline representative from the United States or Latin America. Of the European contingent, their lacklustre and sometimes pompous attitude spoke volumes – as if they were at the show to “go through the motions”.

There was equally a big void from the Asia-Pacific region too.

Dubai what? I hear them say…

The lack of a wider global representation is what I found missing from an otherwise action packed week.

The Red Arrows never failed to amaze me, and talking to a few of my friends and relatives residing in the Jumeirah area of the city were equally impressed at the jaw-dropping fly-by’s that they were normally never likely to see unless in England.

The Airbus A380-800 too, with its huge white fuselage lifted off into the clear blue skies as if being picked up by a child with invisible hands – it was majestic indeed and the landing reminiscent of a feather gliding out of the sky and softly touching the lake below as it came to rest on the runway.

So let’s number crunch the tally - almost like Le Bourget all over again! (Data courtesy of NYC777 over at FleetBuzz.com)

Airbus

20 x A350-1000 for Emirates
50 x A350-900 for Emirates
3 x A380-800 for Emirates
8 x A380-800 for Emirates (firming up previous LoI)
30 x A350 for Dubai Aerospace Enterprise
70 x A320 for Dubai Aerospace Enterprise
20 x A320 for NAS Air (firming an earlier LoI)
34 x A320 for Air Arabia (increased from 25 earlier)
22 x A320 for Saudi Arabian
1 x A350 for C-Jet
1 ACJ for C-Jet
1 x A380 for Saudi Royal Family
2 x A330-200 for Oman Air
3 x A330-300 for Oman Air
10 x A350-800 for Yemenia Airways
8 x A320 for Air Blue
2 x A318 Elites for Al Jaber Group
9 x A321 for Nile Air
68 x A320/A321 for Qantas

Boeing

12 x 777-300ER for Emirates (previously unidentified)
30 x 787-8 for Qatar Airways (previously unidentified)
5 x 777-200F for Qatar Airways (previously unidentified)
70 x 737 for Dubai Aerospace Enterprise
15 x 787 for Dubai Aerospace Enterprise
10 x 777-300ER for Dubai Aerospace Enterprise
5 x 747-8F for Dubai Aerospace Enterprise
6 x 787-8 for LCAL (previously unidentified)
2 x 787-8 for Royal Jordanian Airlines
7 x 737-800 for Transavia (previously unidentified)
31 x 737-800 for Qantas

So those are the end numbers, and with Airbus seemingly in pole position to secure record orders in a 12 month period.

Would I venture to the Dubai Air Show in 2009? God willing, why not, it would be a distinct pleasure and honor. If nothing else, the lure of seeing an operational Al-Maktoum International Airport would equally be breathtaking and crazy to turn down.

As usual at airshows, Airbus scored some very big, lucrative orders - made to look all the more glamorous since its US rival doesn’t stock up on deals to announce at such events. It will be interesting to see Airbus unions’ reactions to all these deals given that Power8 is supposed to cull thousands of jobs, yet with a huge backlog, questions the unions will ask is why cut jobs when you need staff to build these jets - and more importantly, if jobs are being cut on the back of record orders, just where is the profit in such deals?

(Vice president, marketing for Boeing Commercial Airplanes, Randy Tinseth pictured in the 787 Dreamliner mock up in Dubai)

In my follow-up, I’ll reveal more about my discussions with Randy Tinseth who gave an exclusive interview, Louis Gallois, Thomas Enders, CEO of Qatar Airways Akbar Al-Baker and the Emirates chairman, HH Sheikh Ahmed bin Saeed Al-Maktoum - not to mention a few other tidbits!

(Please note the interview with Randy Tinseth will be available for download early next week for registered members at FleetBuzz.com)

The likes of the Asian Aerospace show has not yet managed to break into the Farnborough-Le Bourget stranglehold of eminent air shows – with the intent that the Emirate of Dubai has to become a powerhouse and cornerstone of aviation for the region and world, the event has the backing and recipe to make its mark in Jebel Ali in a couple of years from now. I’m already counting down the days!

Only then we’ll see just what Dubai has to offer. For now, this is just the beginning.

19 comments November 16th, 2007