Dubai Airshow – November 13-17, 2011

by | Nov 9, 2011 | Uncategorized | 0 comments

Invalid request error occurred.The final Airshow of 2011 kicks off in Dubai next week. It will be the last major stage for any substantial new aircraft orders for 2011 and will act as a partial barometer on the health of the airline industry.

Airbus and Boeing have been perennial rivals for new orders at these kind of events and this Airshow will be no different. This year, Airbus holds a 3 to 1 advantage over Boeing in new orders received through November 1. Airbus has received orders for 1231 new aircraft driven by the A320NEO and the all new A350. Boeing has gained 428 orders for new aircraft, driven primarily by new 737 and 777 orders. Speaking of Boeing, their new 787 will be making its Middle East debut at Dubai.

Airshows are major focal points for Aircraft Manufacturers and Airlines alike. Typically an Airshow will provide a few surprises. This year’s big rumor at Dubai involves Qatar Airways stepping up with a major order for new aircraft as they expand their global reach. Also scheduled to be announced is a new regional airline based in the United Arab Emirates.

While Airbus and Boeing continue to battle it out in the marketplace, there are other manufacturers worth keeping an eye on.

After touring Bombardier’s facility in Montreal earlier this year and being thoroughly impressed with their next generation CRJ’s and the All New CSeries, I’m rooting for them to make a splash at the show as well. The new CSeries is scheduled for initial deliveries in 2013, so no time like the present to build a backlog of orders.

I also expect Brazil’s Embraer to make some noise in the regional aircraft category. With the emergence of smaller airlines throughout the world, especially Asia, I expect companies like Bombardier and Embraer to show very well in the short range/regional market while Boeing and Airbus battle each other for the medium and long range airplane business. As the marketplace takes shape for Bombardier and Embraer, expect the rivalry to be similar to that of Airbus versus Boeing.

The Dubai show will also have a military aircraft and aerospace component to it as well where countries will show off their latest wares in military aviation.

As any important announcements are made during the show next week, I’ll pass them along here. Hopefully it will be a busy week in Dubai.

To learn more about the Dubai Airshow including information on the various exhibits and schedules, you can check out their website:

www.DubaiAirshow.aero

It’s Official, Lufthansa Sells BMI Stake but Virgin Says They’re Still Involved

by | Nov 4, 2011 | Uncategorized | 0 comments

Reported earlier today in the UK, Lufthansa has sold its stake in BMI to IAG, the parent company for British Airways and Iberia. Specific terms have not been disclosed and the sides hope to have the deal closed by Spring of next year. Virgin Atlantic in the past said that it would oppose such a deal since it would aide their main rival, British Airways.

Virgin Atlantic says that is not done in its pursuit of BMI as reported on flightglobal.com. It will interesting to see how this plays out. Seeing that BMI has several components to its corporate structure, there may be pieces that are available to Virgin. As a Star Alliance Flyer, I would love to see Virgin join the Alliance and use this opportunity as its conduit.

A merger like this is subject to regulator approval to ensure that it doesnt create an uncompetitive environment in the UK Airline business. The biggest issue will be the diposition of the “landing slots” that BMI owns at Heathrow Airport. BMI currently owns about 8-9% of the landing rights, and no doubt that IAG was motivated to get a deal down quickly so that it can access these coveted rights. In the past it had stated that it would share of these slots to maintain fair balance but I suspect they’ll keep most of the rights for themselves.

What hasn’t been determined yet is the fate of BMI’s frequent flyer program, Diamond Club. For now, BMI said that Diamond Club will function as normal and that members will continue to earn miles and will be able to redeem miles. I suspect this will be the least important item to be resolved by both sides and nothing may happen for months. So for those of you who are Diamond Club members, hopefully your status will not expire until April, which gives IAG and Lufthansa time to figure out the details for the program’s future before your status expires. For Diamond Club members, their ability to earn and redeem miles is critical, and knowing whether their program will be absorbed by Lufthansa or be part of the package sold to IAG is an important item to resolve.

Click here for the link to the BBC story as reported this morning. I’ll post more details as they become available.