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AIRSHOW-Gulf security needs seen displacing jet orders in Dubai

Fri, 06th Nov 2015 12:46

By Stanley Carvalho and Nadia Saleem

DUBAI, Nov 6 (Reuters) - After sizzling with record jetlinerpurchases from Gulf airlines in recent years, next week's DubaiAirshow will be dominated by the presence of arms manufacturersas Gulf states weigh their security needs in a regionincreasingly on edge.

The Middle East's top aviation event won't be devoid of thecommercial swagger which dominated past shows, but regionalconflict, low oil prices and a trade dispute with U.S. airlinesmean the Nov 8-12 event is likely to be a more low-key affair.

"The focus will be on military for the reason that thesecurity environment in the region is deteriorating further,"said Mustafa Alani, director of defence & security at the GulfResearch Centre (GRC), a thinktank.

Security in the Gulf and wider Middle East is at its mostuncertain in years, with the region's conflicts sending hundredsof thousands of homeless into Europe and Islamic State expandingits anti-Shi'ite sectarian campaign of bombings from Iraq andSyria into the Gulf Arab states, Yemen, Libya and Egypt.

The region is the largest market driver in the industry withbillions of dollars spent annually on military equipment. Thefighting in Syria and Yemen may bolster demand for defencehardware, though few deals will be signed at the show itself.

A recent deal between Iran and world powers over thecountry's nuclear activities has rattled states on the otherside of the Gulf, while last week's Russian airliner crash inEgypt has increased the focus on security concerns.

"This will mostly be a military show," said RichardAboulafia, vice president of analysis at Virginia-based TealGroup, adding the focus would be on the UAE's fighter needs witha heavy Rafale and Eurofighter presence.

The UAE has been in on-off talks for 60 fighters withFrance's Dassault Aviation for Rafales and Britain'sBAE Systems for Eurofighter Typhoons.

DRONE DISPLAY

Regional arms buyers are also looking for surveillance andpatrol aircraft since militaries in the region are relativelyunder-equipped, relative to their requirement, Aboulafia said.

"Unmanned Aerial Vehicles or UAVs could be part of thatsolution too. So expect a heavy presence from people promotingthese," Aboulafia added.

In a first for any international show, according toorganizers, UAVs -- more commonly known as drones -- will betaking part in the flying display.

Key exhibitors include Lockheed Martin, Raytheon, Boeing and Dassault with new exhibitorsincluding Oshkosh of the U.S. and Turkey's Roketsan,maker of rockets and missiles including air defence systems.

The value of air power is not diminishing in the region asevidenced in Syria and Yemen and so investments will be in thatdirection -- fighters, helicopters, air transporters, drones,air refuelling, reconnaissance etc, said GRC's Alani.

Over 1,100 exhibitors are participating at the biennialshow, which will see 160-plus aircraft on display includingCanada's CSeries jetliner, looking for a much-needed sales boostas its manufacturer Bombardier addresses cash woes.

The Gulf's three big carriers announced orders with Boeingand Airbus for over 400 jets at the last Dubai Air Show in 2013.

But the expansion plans of Dubai's Emirates, Abu Dhabi'sEtihad Airways and Qatar Airways could slow as low oil pricescurtail investments and trade, according to some analysts.

Boeing has played down expectations of large new orders, butthere might be some big announcements.

"Never say never; there might be some surprises. You haveone of the fastest-growing airlines in the world here," an AbuDhabi government source said, declining to be more specific. (Additional reporting by Tim Hepher, William Maclean AndreaShalal and Katie Paul; Editing by Keith Weir)

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Austria sues Airbus, Eurofighter consortium over suspected fraud

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16 Feb 2017 05:38

Austria to sue Airbus over suspected Eurofighter fraud - APA

VIENNA, Feb 16 (Reuters) - Austria's defence ministry is set to file a lawsuit against Airbus accusing the group of wilful deception and fraud linked to a 2 billion euro ($2.1 billion) order of Eurofighter jets in 2003, APA news agency said on Thursday. A recently completed ministry investi

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14 Feb 2017 17:20

Rolls-Royce weighs on FTSE 100 after five-day advance

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Rolls-Royce loss lies heavy on FTSE 100

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13 Feb 2017 17:04

UPDATE 1-Germany to buy six MKS-180 multi-role warships - ministry

(Adds details, cooperation with Norway) BERLIN, Feb 13 (Reuters) - German Defence Minister Ursula von der Leyen has decided to buy six MKS-180 multi-role warships instead of putting off a decision on two of those ships until 2030, her spokesman said on Monday. The ministry decided las

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13 Feb 2017 15:20

Germany to buy six MKS multi-role warships - ministry

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10 Feb 2017 18:54

UPDATE 1-BAE, Northrop, SAIC, others in $3.04 bln U.S. defense contract

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10 Feb 2017 17:51

German, Dutch militaries agree to deepen cooperation -source

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9 Feb 2017 22:47

BAE, Northrop, SAIC, others in $3.04 bln U.S. defense contract

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8 Feb 2017 00:00

UPDATE 2-Airbus strategy chief Lahoud to leave European group

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UPDATE 1-Lockheed to announce $8.5 billion F-35 order on Friday-sources

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Britain, Turkey sign defence deal to develop Turkish fighter jet

ANKARA, Jan 28 (Reuters) - Britain and Turkey signed a defence deal worth more than 100 million pounds ($125 million) on Saturday to develop Turkish fighter jets, opening the way to deeper cooperation over the lifetime of the project. In Ankara to strengthen ties with Turkey as she navigate

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24 Jan 2017 13:00

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