Monday 16 November 2009

Rolls-Royce and Airbus orders fail to calm industry nerves

Rolls-Royce said it had won an order to supply engines to 12 Airbus A350 aircraft being bought by Ethiopian Airlines. Separately, it announced an order from Air China for engines for 20 Airbus A330 aircraft, bringing the total sale to $2bn (£1.2bn) – at list price. It did not say how much it would actually receive.

Few expect the total of announced orders to reach more than a fraction of those announced at the last Dubai Airshow in 2007, at the peak of the Gulf emirate's investment-fuelled euphoria and global liquidity.

The Middle East has been less severely affected by the recession than most regions, with local airlines still announcing expansion plans. Air Arabia, the Sharjah-based low-cost airline, said it would add six planes to its fleet next year.

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