Middle Eastern exhibitors are again dominating the scene as the Paris air show opens this morning to predictions that the major orders will be coming from the Gulf region.

Qatar Airways will make a big splash at the show today when it announces a major order for Airbus single-aisle aircraft and Abu Dhabi-based Etihad Airways has completed engine selection for the large aircraft order placed at the Farnborough air show in 2008, a source close to the order confirms.

Qatar's deal looks likely to be one of the highlights of the show. It will be announced by chief executive Akbar Al Baker at a press conference, to be held at 12:30 in the Airbus media chalet.

Qatar Airways is already a major operator of the A320 family with more than 20 International Aero Engines V2500-powered A319s, A320s and A321s in service.

At last year's Farnborough air show the airline announced a deal for four additional A321-200s, plus two options. However, that order has not yet been included in Airbus's backlog, so may well figure in the major contract being unveiled today.

Qatar-a321 
 © Qatar Airways

Qatar Airways had been in long-running discussions with Bombardier to become a launch customer for the CSeries small mainline jet. But earlier this year the airline broke off negotiations with the airframer, saying that the proposed deal was "in the freezer" as the two parties could not reach agreement.

Meanwhile, the Etihad order will bring joy to US exhibitors at the show. The airline will be selecting the General Electric GEnx for its 35 Boeing 787s, the Engine Alliance GP7200 for its 10 Airbus A380s and International Aero Engines V2500s for its A320s.

The engine order is valued at about $6.7 billion, potentially making it the largest of the show by value.

There is other good news from the region for those companies keen to be part of the supply chain.

Abu Dhabi is today launching a scheme to persuade Western suppliers to set up shop in the emirate as it pursues its quest of becoming an aerospace powerhouse.

The United Arab Emirates capital is establishing a 25km2 (9.7 miles2) aerospace park at Al Ain airport, outside the emirate's second city, and will this afternoon announce at the show the first of a series of deals with European and North American small and medium-sized enterprises, which plan to relocate there.

A partnership with Bavarian aerospace cluster bavAIRia will see four companies from the German region commit to the park: Aerotech Peissenberg, Aircraft Electronic Engineering, MT Aerospace and Telair International. Further agreements with UK and US businesses will follow during the show.

Anchoring the aerospace park will be a composites manufacturing facility, owned by government investment arm Mubadala and supported by EADS.

The park project is being spearheaded by Abu Dhabi Airports (ADAC). Tenants will reap a number of benefits, including government capital equipment subsidies, inflation-protected leases, no corporation or income tax, 100% ownership and a low cost base, says ADAC.

The moves are part of a long-term strategy by Abu Dhabi to expand its oil-reliant economy into areas such as tourism, commerce and technology, says Zeyad Al Majed, senior project adviser with ADAC. "Given our small population and the standard of living in the UAE, it is clear that our diversification must cover high value-added science and technology-based sectors such as aerospace manufacturing," he says.

Etihad is the national airline of the UAE and ADAC's busiest customer. Its order at the 2008 Farnborough air show comprised firm purchases of 35 787-9s and 10 777-300ERs from Boeing and 20 Airbus A320s, 25 A350 XWBs and 10 A380s.

The airline also holds options on a further five A320s, five A380s, 10 A350s, 25 787s and purchase rights for 15 A320s, 15 A350s, five A380s, 10 787s and five 777s.

Source: Flight Daily News

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