December 3, 2021

Info IEC

Business & Finance Information

Dubai Air Present 2021: Here is what to anticipate

Karim Sahib | AFP | Getty Pictures

DUBAI, United Arab Emirates — Dubai’s final worldwide air present, in November of 2019, appears like one other period.

Just some months earlier than the Covid-19 pandemic turned journey the other way up, the highly-attended biennial aviation occasion celebrated an business that appears very totally different immediately. 

However practically two years after the journey and airline industries got here to a close to standstill, the market is choosing up once more.    

The 2021 Dubai Air Present kicks off on Sunday, November 14. Here is what to anticipate:

Journey business restoration?

Issues have been wanting up for journey with the continued profitable rollout of vaccination campaigns and easing of governments’ Covid restrictions. 

“Executives are cautiously optimistic in regards to the future,” aviation analysts at consultancy Accenture wrote in a notice forward of the present.

The agency predicts 13% development year-on-year in 2022 for industrial aerospace globally, although the yr will nonetheless be 4% beneath 2019 ranges. 

Dubai flagship provider Emirates Airline — the Center East’s largest airline and largest plane purchaser — has loved a few of that restoration itself, narrowing its earlier losses with a 86% surge in income for its half-year earnings for the 2021-2022 monetary yr.  

Nonetheless, worries about potential new Covid variants, inflation and rising vitality costs depart a major quantity of uncertainty for the business. Dubai’s present is bound to see loads of discussions on business restoration, in addition to ways in which aviation has develop into safer and extra hygienic because of the pandemic. 

Due partly to that uncertainty and in addition as a result of Dubai hosts a smaller air present than the Paris or Farnborough occasions, analysts do not anticipate to see many main orders this yr. It is also as a result of the order books for Gulf carriers “are usually extra widebody targeted,” mentioned Sheila Kahyaoglu, aerospace and protection analyst at Jefferies. “So I feel that given worldwide visitors is slower, I simply do not assume that might be a catalyst for extra orders.”

Provide chain points

The worldwide provide chain crunch has impacted many sectors, and aerospace has been no exception.

Inside aviation, provide chain shortages are principally hitting the protection house, Kahyaoglu mentioned. “In communications techniques, ships, semiconductor elements — simply wherever it is hitting the remainder of the world.”

Within the enterprise jet phase, there may be much less of an influence as fewer non-public jets are manufactured per yr than different kinds of plane, but it surely nonetheless “creates a little bit of a scarcity on elements, so OEMs [original equipment manufacturers] should be cognizant of their materials purchases,” Kahyaoglu mentioned.     

Greater than half of aerospace executives — 55% — “expressed decrease confidence of their provide chain timeliness and high quality over the subsequent six months,” in line with Accenture.

Cargo successful

Military sales

In terms of defense, eyes will still be on whether the sale of the Lockheed Martin F-35 II Joint Strike fighter jet to the UAE, penned in the final day of the Trump administration, will see any progress. The mammoth $23 billion sale, comprised primarily of 50 F-35 jets and at least 18 armed drones, is reportedly still being negotiated between Washington and Abu Dhabi. 

Previously, U.S. laws and export regulations prevented it from selling lethal drones or the F-35 to any of its Arab allies. But changes implemented by the Trump administration have made this possible, meaning that if it’s completed, it would be the first sale of the F-35 and U.S.-made armed drones to any Arab country. 

There is also a “general trend toward continued modernization of fighter fleets, mostly modernized fourth-generation platforms,” said Justin Bronk, research fellow for airpower and technology at the Royal United Services Institute in London.

Fourth-generation broadly refers to fighter jets in service from the 1980s until now, with multi-combat roles and more advanced technology than its predecessors, like infrared search and track capabilities and digital avionics. 

Source link