Record Asian order likely to dominate event

A record 200-plane order from Asia's largest budget carrier looks set to dominate a jackpot of deals at this week's Paris Air Show in clear evidence of a multi-speed recovery shaping global industry, sources said. While Western powers display military hardware that their armies can no longer guarantee to buy, all eyes at the world's largest air show will be on civil demand from growth-hungry Asia which has supplanted North America as the busiest travel market. The roughly $17 billion (Dh62.4 billion) deal from Malaysia's AirAsia for revamped Airbus A320 jets is seen as the centrepiece of an industry show once again buzzing with orders. "With the global economy, you're seeing some soft spots but yet you're also seeing some acceleration in some parts of the world. We are seeing a lot from Asia-Pacific and the developing economies," said Gleacher and Co analyst Peter Arment. Sources close to the deal, which is still being finalised, said AirAsia was expected to beat a record for the largest number of planes sold in one contract, even before a recent 180-plane order from India's IndiGo is formally signed. The deal will also be a boost for French-US engine venture CFM International, owned by GE and Safran, which is scrambling to catch up with rival Pratt and Whitney. New developments by both firms have allowed plane makers to offer extra fuel savings to airlines and prompted Airbus to update its best-selling narrowbody A320 with new engines. Boeing has not yet decided whether to copy Airbus in putting new engines on its popular 737 plane. It is weighing this against its preferred option of a bolder redesign, meaning Airbus faces pressure to prove its point with big market wins. In a build-up resembling the kind of mind games played by team coaches before a sporting clash, a Boeing official speculated last week Airbus could sell up to 1,000 jets. Sources dismissed the remark as a bid to embarrass Airbus. Still, barring a last-minute deferral, industry sources said AirAsia's deal was being arranged for Thursday as the finale for a week in which Airbus is expected to sell more than 500 jets. Others expected to sign up for the revamped A320neo are India's Go Air with 72 planes and US leasing giant GECAS. The 150-seat A320 and 737 narrowbody planes are the biggest segment of the market and a cash cow for both Airbus and Boeing. A question unlikely to be answered at the air show, at least in public, is how much they are getting for their planes. Evidence indicates plane makers came out of the industry's worst ever recession offering sharply reduced prices to try to keep up sales momentum. From / Gulf News