DUBAI 2001 CLOSES WITH RECORD US $15.605 BILLION ON-SITE ORDER BOOK

The 7th international aerospace exhibition, which ended a highly successful five-day run at the Airport Expo Dubai, United Arab Emirates on November 8, closed with a confirmed record order intake of US $15.605 billion.

And while exhibitors disclosed another US $25 million worth of sales could be concluded within days following the show, industry attention has quickly turned to a future multi-billion dollar Middle East market where analysts are forecasting more aircraft sales and civil aviation authorities have announced major airport expansion.

The on-site contract intake included a massive fleet order for Emirates, the international airline of the UAE, the largest in the carrier’s history and the biggest on-site declared order for any air show, which was shared between Boeing and Airbus as well as engine orders, corporate jet charters, the supply of radio monitoring, receiving and recording systems and equipment.

The last order of the show came within the final hours, when the UAE Armed Forces signed US $125 million worth of deals for the development of Puma aircraft with Romania’s IAR, Turbomeca of France and Rockwell Collins and Cubic Defence Systems of the USA.

Final audited visitor figures show just under 30,000 visitors from 84 countries attended Dubai 2001. The turnout included some 150 official delegations from 52 nations, 80 of which represented the civilian sector, and a 650-strong international media corps from 36 countries.

And as the show, which featured 450 exhibitors from 33 countries and 10 national pavilions, drew to a close, organisers revealed high hopes for the largest Dubai air show in 2003 with a possible third exhibition hall under firm consideration.

"Eighty per cent of Dubai 2001 exhibitors have reserved space for 2003," said Virginia Kern, Chairman, Fairs and Exhibitions, which organises the Dubai air show. "Indeed the outlook is so positive that we are looking at the feasibility of having additional indoor exhibit space built for the next show."

Dubai 2003 will be held at the Airport Expo Dubai from December 7-11th, 2003. Although the Dubai air show is traditionally held in November, the organisers have moved to the early December date so as not to clash with the Eid holiday celebration at the end of the Holy Month of Ramadan.

First to sign up for the show was Russian aerospace giant Sukhoi, which has reserved 200 square metres, more than its Dubai 2001 participation. "We have had space reservations from the German pavilion organisers and from Brazilian plane maker Embraer, which has reserved both a stand and chalet," said Clive Richardson, Chief Executive, Fairs and Exhibitions.

"We are also processing exhibitor requests from several companies which visited the show this year. "In addition, market leading companies - Lockheed-Martin, Rolls Royce, Bombardier and Boeing - have requested that their chalet interiors be kept in-situ for the next two years, which is a cost-effective means of operating a chalet in 2003 and one we were happy to agree to."

The immediate exhibitor take-off came as no surprise at the end of a show, which made claim to reinvigorating the lack lustre aviation sector of the past two months. The commitment of the Dubai Government, of Emirates airline and the Department of Civil Aviation, which all made headline-grabbing announcements on the opening day of the show, including plans for a US $2.5 billion third terminal at Dubai International, brought a wave of international praise, for the show, the first international aerospace exhibition to be held after the events of September 11th.

"This show is extremely important to the aviation industry and we are very grateful for the courage and foresight of HH Sheikh Mohammed in going ahead with major announcements at this time," said Tony Fitzpatrick, Regional Vice President Middle East, Swift Aviation Group, USA.

Rock solid government support gave Dubai 2001 an added-edge over its competitors, according to Jean-Louis Berrendonner, Pratt & Whitney’s Senior Vice President, Europe, the Middle East, Africa and the CIS, Large Commercial Engines. "Despite recent events, we believe in Dubai and its role as a regional commercial hub," he said.

And international headline writers were fulsome in their praise.

"It was worthwhile coming and the occasion of one of the world’s most audacious orders in aviation history, by Emirates, was visionary and shows there is still business to be done and relationships to be made for those who attended," said Alan Peaford, Editor, Flight Daily News.

That potential remains in this region, which is expected to experience economic growth above the world average for the next two decades, was under no doubt as the world’s two main aircraft manufacturers revealed bullish forecasts for a region supporting an annual 4.2 percent increase in air travel.

European plane maker Airbus Industrie, which showcased its newest and largest aircraft, the A340-600 at Dubai 2001, predicted Middle East and African carriers will acquire some 620 aircraft, worth some US $60 billion up to the year 2018 and it expects to take half the business.

Mainline competitor Boeing was equally upbeat, saying the Middle East will require 651 new commercial jets, worth US $63 billion over the next 20 years.

"By 2020 the region’s carriers will be flying an estimated 1,020 aeroplanes," said Randy Baseler, Boeing Commercial Airplanes Vice President Marketing.

"Forty-one percent of the new deliveries will be intermediate-size, twin-aisle aeroplanes, a significantly higher proportion than is expected in other regions. More than half, or 351 aircraft delivered, will be single-aisle and small regional jets with just five percent being 747-size or larger."

Boeing forecasts that while the most heavily travelled routes, in terms of passengers, will continue to be to and from Europe, the highest growth for the Middle East will be routes to and from Southwest Asia, followed by intra-regional travel.

Civil aviation infrastructure development and the freeing up of air regulation are two other factors prompting growth.

"It is no secret that governments throughout the Gulf in particular are pressing ahead with aviation infrastructure expansion plans, and Dubai is included in that," said HH Sheikh Ahmed bin Saeed Al Maktoum, President, Department of Civil Aviation, Government of Dubai and Chairman of the Emirates Group.

"According to the International Airports Council, the Gulf states alone will spend US $2 billion within the next three years expanding existing facilities, which is quite apart from new build. New routes are constantly being opened up and both Bahrain and Lebanon have recently taken the brakes off air transport regulation and moved towards open sky policies."

The show was opened in a blaze of publicity by HH General Sheikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister who was accompanied by a powerful international delegation which included HRH Prince Andrew, the Duke of York, Vice Admiral Charles W. Moore Jr., Commander of the USN Forces, Central Command and numerous government officials from throughout the Gulf.

And the largest official Dubai air show delegations programme subsequently saw missions headed by the Emir of Bahrain, HH Sheikh Hamad Bin Issa Al Khalifa, HH Prince Faisal, who represented the Jordanian Royal Air Force and UK Armed Forces Minister Adam Ingram.

Following a lengthy opening tour, in which the Royal party visited every stand and all the 50 aircraft participating, HH Sheikh Mohammed addressed a press conference in which he boldly declared Dubai’s intention to press ahead with all investment and projects.

"Our country today stands four-square at the crossroads of the world and has transformed itself into a major player on the global stage. Our goal is now to expand its dynamic growth into every area of commerce, tourism and transport," said His Highness.

"Our unwavering aim is to make this the best place to do business, the top tourist destination and transport hub of the region and the undisputed commercial and communications capital of the Middle East.

"Huge commercial projects are under way. Massive housing developments are rising from the sands. Two huge offshore islands visible from space will double our coastline. Dubai airport will grow to handle five times the 14 million passengers a year it sees today. We are not content simply to wait for the future - we are building it."

And as Emirates announced its breath-taking mega acquisition of 25 Boeing 777s, 22 Airbus A380s, eight Airbus A340-600s and three A330s by the end of the decade, HH Sheikh Ahmed declared the timing of the order was no coincidence.

"We are determined not to allow present difficulties to deflect our resolve," he said.

"Aviation is one of the world’s most dynamic industries. Dubai is one of its most dynamic cities. Short term, airlines have seen their business dip. Long term, air travel remains firmly on course to double in the next 15 years. Even today we need larger aircraft, let alone in five years when our first A380 leaves the runway at Dubai.

"By 2006, as one of the world’s fastest-growing and most successful airlines, we expect to be flying more than twice as many customers as we do now. To do this, we need more, larger aircraft from the two best manufacturers in the world.

"Landing slots at airports like Heathrow, Frankfurt and Hong Kong are at a premium. Our new fleet, with more seats, greater comfort and facilities and lower costs, is vital to helping us hold down fares. We are ordering the aircraft of tomorrow, whose time has come today."

The first day also saw the show witness the emergence of the newest fully-licensed airline in the Gulf Co-operation Countries (GCC) - Bexair and it was only a matter of days, before it took its first contract, worth US $4 million in total. At the show, Bexair concluded its maiden business deal with a UAE-based financial house for the sale of 200 hours of charter service. A second deal, for 600 hours, was made with a Gulf government organisation.

"This is more than we expected," said John Donald M. Davie of Bexair. "Our intention was to create awareness at the show - and these orders have been a bonus."

Other orders followed. TAG Aeronautics, the exclusive representative and distributor for Bombardier’s Global 5000 in 22 Middle East and Arab countries, placed an order for five of the new aircraft. Rolls Royce took a US $475 million contract to supply Trent engines to Emirates and German radio communications supplier Rohde & Schwarz clinched a US $4 million deal to supply equipment to an undisclosed Bahraini client.

Other exhibitors, most notably Pakistan’s National Development Complex (NDC) and Transworld of Jebel Ali, Dubai, were in final sales negotiations as the show closed.

NDC was close to selling 36 light aircraft to two countries in the Middle East and Africa in deals worth US $20 million while Transworld, on its first Dubai air show appearance, was closing US $3-5 million worth of business.

"During the first two days of the show we met with an official Kuwaiti defence delegation and are now discussing providing them with maintenance services and aircraft parts," said Stephane Tillon, Business Development Manager, Transworld. "We also met an Abu Dhabi police delegation and are discussing joint co-operation in maintaining and supplying parts for their helicopter fleet."

But visitors weren’t the only people to bring business for Transworld, inter-exhibitor networking also paid off. "We are now in talks with an American maintenance company regarding a possible future partnership which could see us providing technical support to their clients in the Gulf, the wider Middle East and Asia," added Tillon.

The show also hosted a flurry of inward investment announcements, joint ventures and distributor appointments, among them Sicma Aero Seat of France, which opened a support facility in Dubai’s Dubai Airport Free Zone.

"We went ahead with the investment because we believe the industry’s downturn is cyclical and will rebound by 2004. There’s definitely good business potential in the Middle East and the growth here is likely to be higher than the rest of the world," said Christian Novella, President, Sicma Aero Seat.

Emirates and CAE of Canada meanwhile, used the show to announce the 2003 launch of a US $100 million Gulfstream business jet training centre in Dubai the first outside the USA to offer Gulfstream training. And Emirates and Airbus Industrie went on to sign a memorandum of understanding to create a jointly-owned Dubai-based aviation services company which will deal in spares trading as well as airline consultancy.

Prior to September 11th, Dubai 2001 had been a sell-out show. In the aftermath it lost around 50 exhibitors - mainly from the SME sector although managed to recruit some last-minute exhibitors, including aerospace majors Goodrich Corp and Aeroports de Paris. Exhibitors, regulars and new-comers alike, were almost universal in their praise and in the judgement that the trip to Dubai was worthwhile.

"The organisers really deserve an awful lot of credit for pulling off what has been a very worthwhile show. I am very glad we came, there has been plenty to write about and, given the state of the industry, the exhibition more than exceeded my expectations," said Charles Alcock, Editor, Aviation International News Show Daily.

For MTU Aero Engines of Germany the quality of visitors and the enhanced delegations programme, which saw on-site liaison officers based in each hall, paid dividends.

"People here are seriously interested in business and take the time to sit down and interact with exhibitors. As a relationship building exercise it was tremendously successful. We achieved more at Dubai 2001 than in a whole year of travelling," said Harald Zirngibl of MTU.

Member of the Swedish pavilion - the first to represent the country in any Dubai air show - went away satisfied.

""The quality of both exhibitors and visitors was very good and thanks to the upgraded delegations programme, we got to spend ample time with visitors to discuss business," said Peter Robertsson, Manager Marketing & Sales, SAS Flight Academy.

Visitors too were equally impressed.

"I visit the show every time it’s on to find the latest information on equipment and technology. This year I found the Sukhoi stand extremely useful," said Capt. Mohammed Ali Al Qumaizan, Pilot, Kuwait Airways.

And J. Scott-Laws of Aerogulf Services, UAE, saw the show as breathing new life into the industry. "It meant a lot to all of us involved. I’m visiting to source service packages for our fleet of helicopters and the latest technologies for offshore services," he said.

Official delegation members said the show proved its worth as a sourcing and business updating forum.

"This time we had sufficient opportunity to talk to various exhibitors, to assess information on products," said Saad Abdul Rahman of the Bahraini Air Force.

As plans for Dubai 2003 progress, the organisers have confirmed the show will feature an ISTAR (Intelligence, Surveillance, Target Acquisition and Reconnaissance) pavilion and conference, as well as an information technology arena and conference.

"The feasibility of a pavilion devoted to airport technology is also being reviewed," said Clive Richardson.

And the outlook for expanding participation remains positive.

"As the US aerospace industry recovers from the effects of recent events I hope to increase the number of participating American companies for Dubai 2003," said Ken Cooksey, Director Aviation/Aerospace Industry Marketing International Trade & Business Development, Enterprises Florida Inc.

"There is little doubt that the show was highly successful for US companies. It was a tribute to the skills of the organisers, and the commitment of the Dubai Government."

The Dubai air show is organised by Fairs and Exhibitions in conjunction with the Department of Civil Aviation, Government of Dubai and in collaboration with the UAE Armed Forces.