Posted inCulture & SocietyCulture & SocietyGCCMiddle EastPoliticsPolitics & EconomicsTransport

Dubai Airshow Day 1: All the biggest deals and interviews

Latest: Etihad to acquire a stake in Switzerland’s Darwin Airline and rebrand it Etihad Regional

Sun/17 Nov/17.00pm: As the first day comes to a close and a sandstorm blasted the site, organisers revealed the total order book tally amounted to a record-breaking $162.6bn, surpassing the previous record of $155bn in 2007. The top headlines from day one:

Etihad to rebrand Swiss carrier as Etihad Regional after taking 33.3% stake

Dubai’s Emirates orders 50 more A380 superjumbos

Boeing launches new 777 jet with 259 Gulf orders from Emirates, Qatar Airways and Etihad

Abu Dhabi’s Etihad to order 82 Boeing jets worth $25.2bn

Airbus, Abu Dhabi close to parts deal as Etihad eyes A350

Qatar Airways orders five Airbus jets

Sun/17 Nov/16.30pm Deal Confirmation: Etihad confirmed it will acquire a 33.3 percent stake in Swiss carrier Darwin Airline and rebrand it as Etihad Regional. It will then “align its network to connect passengers from secondary European markets onto the main networks of Etihad Airways and its equity alliance partners,” Etihad said in a statement. “This is a step-change for Etihad Airways,” Etihad CEO James Hogan said.

The new ‘Etihad Regional’ logo will be displayed prominently on each side of the fuselage of the Darwin Airline aircraft, while the rear of the plane will carry the words “Operated by Darwin Airline”, and the Darwin Airline’s present logo.

By mid-2014, Darwin Airline will add 21 new routes and 18 new destinations. Its network will then include six European gateways served by Etihad Airways – Geneva, Amsterdam, Paris, Düsseldorf, Belgrade and, commencing in June, Zurich. The new airline will also connect into Etihad’s existing equity partners Air Berlin and Air Serbia.

Sun/17 Nov/16.00pm Breaking News: Abu Dhabi’s Etihad is to announce it will invest in Swiss airline Darwin Airline, a regional airline that started operations in 2003. The carrier already has equity stakes in six international airlines.

Sun/17 Nov/15.30pm: Back at the EADS event CEO Tom Enders is obviously in good form after the big Emirates A380 news earlier today. Enders says problems with the wing cracks in the superjumbo, combined with the global financial downturn, were to blame for the lack of A380 until the Emirates deal today ended its dry spell. Addressing the defence side of the business, he claimed the failed merger with BAE doesn’t change its long-term strategy, but it needs to become more competitive outside of its core European market.

Sun/17 Nov/15.15pm Deal Confirmation: Courtney Trenwith has just informed us Etihad has announced a $26.9bn deal to buy 117 Airbus aircraft, including 40 A350-900, and 10 A350-1000, 26 A321-neo and one A330-200F freighter. The engines will be supplied by Rolls Royce engines and CFM. Etihad president and CEO James Hogan said the aircraft will allow carrier to share aircraft between its six equity partners (Aer Lingus, Air Serbia, Air Berlin, Virgin Australia, Jet Airways and Air Seychelles), improving operating costs between various airlines.

Sun/17 Nov/15.00pm Deal Confirmation: Qatar Airways is certainly determined to grab some of the fanfare from Emirates. In addition to the 50 Boeing 777X jets ordered earlier today, Courtney Trenwith reports it has now confirmed it will order five A330-200 freighter aircraft from Airbus. The deal also has an option to buy eight more, which Qatar CEO Bakar Al Akbar said was likely to be taken up soon, taking the total contract value to $2.4bn. “(Airbus CEO and president) Fabrice Bregier knows that when Qatar Airways take options it’s always confirmed very soon after that order,” Al Akbar added confidently.

Sun/17 Nov/14.40pm:

Sun/17 Nov/14.30pm: After a brief stop for lunch, Airbus’ parent company European Aeronautic Defence and Space Company (EADS) is taking centre stage and quickly announces that the region is a key player for it. EADS marketing officer Marwan Lawoud says 17 percent of its future revenue will come from the Middle East. The company is currently manufacturing some of its Airbus A350 parts in Al Ain, but Laoud said it is keen to ramp up its production in the UAE and is looking to team up with Abu Dhabi’s Mubadala to manufacture composite aircraft parts. Both Airbus and rival Boeing have already established partnerships with Strata, Mubadala’s composites manufacturing unit in Al Ain.

Sun/17 Oct/13.50pm: Beatrice Thomas has now headed over the the Embraer press conference and it seems the Brazilian planemaker is keen to see its customer base grow from 65 airlines at present to 100 by the end of 2017 or the beginning of 2018. While COO John Slattery doesn’t see the company competing with the likes of Boeing or Airbus, he said it has strong market share in the 70 to 130 seater plane market and has 130 firm orders in place this year, making 2013 its best year on record.

Mathieu Duquesnoy, vice president for the Middle East and Africa, pointed out Embraer didn’t have any presence in the Middle East six years ago but it has invested in customer support and product improvement and now has orders of 61 jets from eight operators, with 54 aircraft in place. He said it has 305 orders from the Middle East for the 30-120 seater between 2012 and 2031, with 130 due for delivery before 2012. This makes up 10 percent of demand for all jets in the region, Duquesnoy said, adding that the launch of its Ejet2 series would help boost these orders even further.

 

…continued on next page

Sun/17 Nov/13.20pm: While Etihad boss James Hogan spoke earlier about the rapid growth of the Abu Dhabi airline, Schaeffer said Hogan’s strategy of buying stakes in foreign airlines “doesn’t make sense” and said for proof of this you just need to “look at the history of Swiss Air” which he said nearly went bankrupt buying lots of small stakes in other airlines.

He was also quite dismissive about Al Maktoum International Airport, the setting for today’s show. He claimed the Dubai government was offering incentives for airlines to move to Al Maktoum but he believed it “doesn’t make sense” to move from Dubai International just yet. In terms of deliveries, the German boss confirmed Lufthansa was due to get 30 777Xs by 2020.

Sun/17 Nov/13.00pm: While everyone digests the big Boeing and Airbus deals over lunch, Daniel Shane caught up with Carsten Schaeffer, vice president of German carrier Lufthansa. Dubai carrier Emirates this year announced a deal with Australia’s Qantas and this summer the airline’s president Tim Clark said it might be interested in an alliance with its European rival, but the Schaeffer said both sides were no where near making any kind of deal. “There will be a lot of coffee had here (at the airshow) and I’m sure people will talk, but there is nothing tangible to announce yet. It has to make sense for both parties,” he said.

Sun/17 Nov/12.40pm: Just minutes later, Emirates has announced even more orders, this time for the superjumbo A380: It has been confirmed the Dubai carrier will order for 50 A380s from Airbus, in a deal worth $23 billion at list prices. This brings Emirates’ total order book of A380s to 140 aircraft, chairman Sheikh Ahmed confirmed.

Sun/17 Nov/12.30pm: Qatar CEO Akbar Al Baker described the 777 fleet as a revolutionary aircraft that would transform the industry. It is already the airline’s flagship aircraft and had been the backbone of Qatar’s rapidly expanding fleet, he said. “(The new order will help) to chart a new course for Qatar Airways to elevate our fleet to a new level,” the Qatari boss added.

Sun/17 Nov/12.20pm: “In recent years much of the attraction in global aviation has shifted to the Middle East because countries like the UAE and Qatar have tapped into our geographical advantage to build a new airport transport connection for the world,” Emirates chairman Sheikh Ahmad told reporters. “This order will help Emirates meet it’s future need … and ensure Emirates can continue to be competitive with the latest and most efficient aircraft. The order (for both Emirates and Fly Dubai) ensures our commitment and long-term vision for the aviation vision up to 2025 and beyond.”

Sun/17 Nov/12.10pm: Sheikh Mohammed Bin Rashid Al Maktoum, Deputy President and Prime Minister of the UAE, and Ruler of Dubai, has just arrived at the air show.

Sun/17 Nov/12.00pm Deal Confirmation: And the orders are absolutely flying in now. Courtney Trenwith reports that Emirates chairman Sheikh Ahmed Bin Saeed Al Maktoum has announced that the Dubai carrier will order 150 Boeing 777-X aircraft at a list price of $76bn. Meanwhile, Flydubai is ordering 111 aircraft – including 11 Boeing 737NGs and 100 Boeing 737-MAX jets. Qatar Airways, not to be outdone, is ordering 50 Boeing 777-9X aircraft at a list price of over $19bn. We’ll bring you more details on these as we get them. But it’s certainly been a stunning morning for Boeing so far. And let’s not forget that Emirates is still planning to add Airbus A380s to its fleet.

 

…continued on next page

Sun/17 Nov/11:50am: At the other side of the event, Daniel Shane caught up with Raytheon president Matt Riddle. The defence boss says one of the biggest opportunities in the Gulf is for radar systems that detect whether enemy jets or ships get too close to your borders. He didn’t say whether this was related to Iran or which possible enemy he was talking about, but you can read between the lines. Raytheon is expected to announce several defence deals throughout the airshow.

Sun/17 Nov/11:45am: While Qatar Airways has remained relatively quiet this year in terms of rumours about deals, our chief reporter Courtney Trenwith has noticed that they do seem to be trying to grab the limelight as they have banners and flags on poles every 50 metres on the road into the airshow venue. The airline’s communications team is also handing out bundles of press packs about its new airport in Doha and its Dreamliner programme.

Sun/17 Nov/11:40am: The team is now heading over to the Emirates press conference for will surely be the talk of the show. Chairman Sheikh Ahmed Bin Saeed Al Maktoum has already admitted Emirates will buy more Airbus A380 superjumbos but it is also rumoured to be after some of Boeing’s 777X aircraft. Stay tuned for the all the exciting details as we get them.

At the same time, CFM International – which is a joint venture between General Electric and France’s Snecma – and Brazil’s Embraer have also lined up press conference spots at noon so we’ll keep you in the loop if anything emerges from these sessions.

Sun/17 Nov/11:30am: “Boeing has been a long-term strategic partner for Etihad throughout that journey, playing an integral role in our growth. We’re looking at network plans 30 years out,” Etihad president and CEO James Hogan said. With two more press conference slots for the Abu Dhabi carrier today we can expect more to come. Etihad this month celebrated 10 years in operation: Click here to read our interview with James Hogan on his plans going forward.

Sun/17 Nov/11:00am Etihad Deal Confirmation: Boeing and Etihad Airways confirmed an order for 56 widebody airplanes with options and purchase rights for 26 additional airplanes at the start of the 2013 Dubai Airshow. The order is valued at a total of $25.2 billion at list prices.

Sun/17 Nov/10:30am: There is such high demand to get into this year’s show that queues and sheer weight of traffic have resulted in a car accident, adding to the already-massive queues of people eager to get into the venue. Some 60,000 are expected in total this year.

Emirates Deal Alert: Emirates will buy more Airbus A380 superjumbos at the Dubai Airshow, Sheikh Ahmed bin Saeed Al Maktoum, the chairman of Emirates, told Reuters. “We will order A380s,” he said, adding that the carrier’s order value at the show will exceed its order of $18 billion at the last airshow in 2011.

“Yes, for sure. We (Emirates) will exceed last year’s orders,” he confirmed.

Sun/17 Nov/10:00am: Dubai has barely started and already organisers of the Bahrain International Airshow have confirmed that chalet space for their event, which will take place on January 16-18, is sold out. They are expecting military and civil delegations from over 40 countries and over 20,000 trade visitors.

Sun/17 Nov/9:30am: Its the morning of the big day and our team is already on site ready to bring all the news and gossip from the Dubai Airshow and its new home at Dubai World Central.

WAM has confirmed the Vice President and Prime Minister and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, will open the Dubai Airshow at Al Maktoum International Airport, amid the presence of several other sheikhs, heads of governments, ministers of defence, military and security officials from a series of countries.

Deal Alert: Abu Dhabi’s Etihad has confirmed plans for three announcements today, kicking off at 11am even before the show is officially opened. Sources said last night it was in talks to order as many as 75 Airbus jets, including around 50 of the European planemaker’s long-haul A350.

 

…continued on next page

Sat/16 Nov/5pm: Good morning and welcome to the Arabian Business live blog of Dubai Airshow 2013. I’m Shane McGinley and for the next few days we will be bringing you the latest breaking news, rumours, interviews and coverage from the biggest aviation showcase in the Middle East.

The rumours have been flying high in the last few weeks: Will Emirates order 175 twin engine Boeing 777 wide bodies? Will FlyDubai order at least 50 aircraft worth $5bn? Will Lufthansa place big orders? Will Etihad snap up some new Dreamliners?

The five-day event is expected to be packed with record-breaking deals, 60,000 visitors, over 1,000 exhibitors, big names and epic visual displays. And Kelly Rowland for the music fans!

In typical Dubai style, it’s also bigger this year as the new venue at Dubai World Central will have double the space, a clear example of the growth in the economic environment since the previous event in 2011.

<Click here for essential details on the event, parking etc>

While the event doesn’t start until noon on Sunday, our reporting team – Daniel Shane, Courtney Trenwith and Beatrice Thomas – have already been out and about and have interviewed some of the big names ahead of the event.

Deputy Editor Daniel Shane headed to Abu Dhabi for a meeting with US military giant Raytheon ahead of the show and it seems they have some big news to unveil at the show. We’ll keep you posted.

The two big aviation rivals – Boeing and Airbus – both have their own issues to deal with. Boeing is have trouble with US trade unions, who have rejected its deal to build the new 777X in Seattle, but executives at their press conference on Saturday morning told us the Middle East is in the running as a potential replacement. Of course, Boeing already has a deal in place to make parts in Abu Dhabi so this is a real possibility.

While Qatar Airways and others have also complained about reliability problems with Boeing’s high-tech 787 Dreamliner, executives promised that within six months it would be rolling out changes to the aircraft’s software which should help resolve the issues.

Over at Airbus they are seeing a challenge from sluggish sales of their superjumbo, the A380. While Emirates would love to have jets that can go triple deck and hold up to 800 passengers, Airbus executives didn’t give the impression that this would be on the cards any time soon.

Instead, they are hoping to win the war on comfort and are calling for an industry standard of 18 inches for all long-haul economy seats. They claim Boeing’s 17-inch seats on some of their aircraft are “substandard” and haven’t been changed since the 1950s.

Breaking News: UK prime minister David Cameron this evening made a whistlestop tour of the Dubai Airshow, which included meeting officials from Airbus and BAE Systems, as well as the UK’s RAF aerobatics squadron, the Red Arrows, which Cameron said were ‘a real treat’ to meet via a tweet from the site. Cameron is backing BAE’s campaign to sell its new fighter to the UAE; amid British government optimism that the Typhoon – built by BAE, EADS and Finmeccanica, and financed by the UK, Germany, Italy and Spain – will be chosen in a multi-billion dollar deal with the UAE.

Deal Alert: Dubai’s Emirates has called a press conference for Sunday at noon. Etihad is rumoured to be signing up for a $16bn Airbus deal for 75 jets. The Abu Dhabi carrier also has a press conference spot booked in on Sunday at noon. In total, 19 press conference spots have been booked on the opening day.

Follow us on

Author