Sunday, 15 November 2009

AIRSHOW-Arms race dominates Dubai air show

Middle East tension is driving demand for military hardware at the Dubai Air Show which opens on Sunday, but recession means fewer orders for civilian jets.

Bitter rivals Airbus (EAD.PA) and Boeing (BA.N) will still woo carriers at the top Middle East aviation event, but most airlines' cheque books are empty and the fiercest marketing battles will be waged by jet fighters performing above the Gulf.

"With more threats and continued tensions you will have continued demand for new systems and new capabilities and that is why we have seen ongoing interest in upgrading and renewing fighter fleets," Riad Kahwaji, chief executive of the Institute for Near East and Gulf Military Analysis, told Reuters.

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