Gulf-based carriers stole the limelight at the Paris Air Show, with large orders for new aircraft and engines at a time when most airlines around the world are retracting.
The Paris Air Show kicked off earlier this week on a gloomy note with the global aviation industry reeling from the effects of the economic downturn and the host country still struggling to find answers to the cause of the recent crash of Air France flight 447.
Further evidence of the hardship facing the industry was provided by British Airways on Tuesday when it asked thousands of its staff to work for free for up to four weeks.
However, amidst this ominous backdrop GCC carriers helped brighten the mood with several large orders and bold predictions about their prospects for growth.
Etihad Airways led the way with a major deal that could become the largest jet engine order in commercial aviation history if the carrier exercises all options and purchase rights. The carrier said GE Aviation, Rolls-Royce, Engine Alliance and International Aero Engines (IAE) would be the engine partners for the 100 Airbus and Boeing aircraft that it ordered at last year's Farnborough International Air Show.
The firm orders are for 239 engines, which includes 19 spares, worth $7bn at list prices, including maintenance contracts. The carrier also has another 105 aircraft on option from the two aircraft makers, which, if exercised, would increase the engine orders to $14bn.
'Despite the tough economic challenges currently facing the aviation industry, Etihad Airways continues to roll-out its long-term expansion plans in a measured, considered and controlled manner,' said Etihad's CEO James Hogan.
'The new aircraft, and engines that will power them, are scheduled for delivery between 2011 and 2020 which demonstrates the confidence we have in our plans for sustainable future growth.'
Another Abu Dhabi-government backed firm, Mubadala Development, announced that it signed a deal with General Electric to set up a maintenance and repair centre in the emirate. Mubadala's Abu Dhabi Aircraft Technologies division will service the US company's planned GEnx engine as well as existing models.
GE and the Mubadala unit will also establish a training center in the capital.
Qatar Airways also announced major deals at the air show, including firm orders for 24 single-aisle Airbus jets. The $2bn order includes 20 A320 aircraft and the confirmation of commitments for four A321 planes that were announced at Farnborough last year.
Qatar Airways' chief executive Akbar Al Baker hinted this week that the A320s could be used to launch a new low-cost airline in the region.
The aircraft, to be delivered through 2012 to the Doha-based airline, will be powered by engines made by International Aero Engines, a consortium that includes United Technologies' Pratt & Whitney division, Rolls-Royce Group of the UK and Germany's MTU Aero Engines Holding. The engine order is worth more than $700m.
Al Baker also made headlines this week by saying his airline may scrap its order for Boeing 787s due to lengthy delivery delays and warned that the carrier may become an exclusive Airbus customer. Speaking to reporters at the Paris Air Show, Al Baker said: 'Boeing is doing things too late. If they don't play ball with us, they'll be in for a very serious surprise.'
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