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Aviation firms vie for Asian orders

Philippine delegates view an air show display with sunshades at the Asian Aerospace 2006 exhibition in Singapore yesterday. PHOTO: AFP

Aviation companies opened Asia's largest air show yesterday with fiercely competitive campaigns aimed at coaxing China, India and other regional customers to splurge on superjumbos and sophisticated jet technology.

Airbus flew in the world's largest passenger plane, the A380, to awe potential purchasers at the Asian Aerospace exhibition in Singapore. Rival Boeing Co urged carriers to consider acquiring the wide-bodied 747-8, a more fuel-efficient version of the old workhorse jumbo that is expected to be ready for delivery in 2010.

Other heavyweights such as the largest US defense contractor, Lockheed Martin Corp, Sweden's Gripen-SAAB, Dassault Aviation of France and Russian manufacturer Sukhoi showcased cutting-edge combat aircraft for countries across Asia that are boosting their defense budgets.

"Asia is becoming a huge market for the aerospace industry," said Ghazemy Mahmud, the Malaysian-based editor of the Asian Defense Journal.

"Countries here are developing swiftly, and their purchases of commercial and military aircraft are speeding up together with their economic growth," Mahmud said.

The most lucrative clients look to be China and India. China's aviation regulator has said the country expects to buy about 100 planes a year during the next five years, while India's aviation sector is booming, with an average passenger growth rate of between 25 percent and 30 percent in recent years.

This year's Asian Aerospace conference, which runs through Sunday, has more than 930 exhibitors from 43 countries. At least 27,000 trade representatives are expected at the biannual show, which is the region's largest but ranks third globally behind shows held in alternating years in Paris and Farnborough, just outside London.

The rivalry between Chicago-based Boeing and Toulouse, France-based Airbus is taking center stage this year.

Boeing said in a statement it "enters Singapore with terrific momentum across the company," while Airbus SAS stressed it came with "a positive outlook after achieving record orders, deliveries and profitability in 2005."

Airbus has the show's star attraction with the double-decker A380, which will overtake Boeing's 747 as the world's largest commercial jet when it is scheduled to enter service with Singapore Airlines Ltd by the end of the year. Seven airlines in the Asia-Pacific have ordered a total of 49 A380s, which seats 550 passengers in three classes or 800 passengers in a single class.

Airbus' chief operating officer John Leahy said on Monday that deliveries won't be held up after the jet failed a wing stress test last week. Leahy said there should not be any major modifications to the design of the plane.

"We have enough data from that test to know what needs to be done," he said. "This should have no impact on the delivery of the aircraft."

The previous Asian Aerospace in 2004 culminated in deals worth US$3.6 billion.

In 2008 the show will relocate to Hong Kong, which organizers say is an ideal gateway to China's aviation market and has better facilities.
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