AIRCRAFT manufacturers, airlines, government ministers and military top brass started gathering on Monday for the Farnborough International Airshow scheduled to end next Sunday. The biannual event is one of the industry's biggest showcases, with exhibitors from 38 countries signed up to attend. More than 1,000 exhibitors from 38 countries have signed up for Farnborough with delegations from Egypt, Taiwan and Morocco attending for the first time. Organisers also cited stronger interest from major players China and Russia. Airbus and its arch rival Boeing have come into the event facing growing challenges to their business. Boeing, which was taken over by Airbus as the industry leader in 2003, brought its 787 model to the show, the jet's first appearance in Europe. The arrival of the long-awaited and long-delayed B787 jet at Farnborough's airfield helped generate a buzz in the beginning of the event. Boeing has admitted that the planned first delivery of the aircraft to Japan's ANA scheduled for late this year may slip into early 2011 because of inspections and instrument changes. The delivery of the aircraft is already more than two years overdue because of production problems. Also on show at Farnborough is another aircraft with a troubled and lengthy production history Airbus's long-delayed A400M military transport plane. Airbus expects to start delivering A400Ms sometime after December 2012 around four years behind schedule and 50 per cent over budget because of technical glitches. New orders for commercial aircraft are likely to be restrained and restricted to buyers from strong emerging markets in the Middle East. Among likely buyers at Farnborough are Emirates Airline, which revealed plans to purchase more planes worth $20 billion, and Qatar Airways, which is looking to equip a new low-cost carrier in the region. The International Air Transport Association (IATA) has forecast that global industry profits will reach $2.5 billion this year, an upturn from the huge $9.4 billion loss in 2009. Boeing forecasts a $3.6 trillion market for new commercial airplanes over the next 20 years as world economies rebound and strong demand for new and replacement aircraft spurs growth. The Boeing 2010 Current Market Outlook foresees a market for 30,900 new commercial passenger and freighter airplanes by 2029. The report reflects the improving yet still unstable conditions facing the industry. "We expect the world economy to grow above the long-term trend this year. As a result, both passenger and cargo travel will grow this year. Airline revenue and yields are up, but fuel prices remain volatile," said Randy Tinseth, vice president of Marketing. Passenger traffic is expected to grow at 5.3 per cent over the long-term, driven by economic growth from regions with diverse air transport needs. The Middle East, which has been one of the fastest growing regions for air travel in recent years, represents another very strong market. Airlines in the Middle East have been growing rapidly by taking advantage of geography, demographics, airplane technology and well-coordinated growth and investment plans. The world's freighter fleet is projected to increase from 1,750 to 2,980 airplanes, an increase of more than two-thirds. This growth will require 2,490 cargo planes. Additions to the fleet will include 740 new-production freighters (worth $180 billion at today's catalog prices) and 1,750 airplanes converted from passenger models.
