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Asian Aerospace clinches record 15 bln usd in deals

27-Feb-2006

SINGAPORE (XFNews) - Asian Aerospace, the world's third-largest air show, clinched a record 15.2 bln usd in deals following a spate of aircraft orders geared to meet booming travel demand.

The order book included purchases of planes, helicopters, aircraft engines, simulators as well as avionics packages and contracts for maintenance, repair and overhaul, organisers said in a statement issued late Friday.

It was more than four times the 3.52 bln usd worth of contracts signed during the 2004 Asian Aerospace show.

"We are delighted at the levels of business announced at Asian Aerospace and the total of 15.2 billion dollars is way beyond our optimistic expectations," said Asian Aerospace 2006 president Ed Ng.

It was a roaring send-off for the biennial Asian Aerospace event, which was held in Singapore for the last time this year.

Britain-based Reed Exhibitions, the event organisers, said Asian Aerospace will move to Hong Kong in 2007 following a disagreement with the Singapore government on the terms for developing a new site for the show.

Singapore will hold its own air show from 2008.
 
Indian carriers, seeking to satisfy soaring travel demand at home, stamped their class at the event -- held near Changi Airport -- with the most aircraft orders.

Indian Airlines placed an order for a total of 43 A320 and A319 planes from Airbus worth 2.5 bln usd, while another Indian carrier GO ordered 10 Airbus A320 family aircraft, estimated by Agence France-Presse at 640 mln usd based on catalogue price.

Indian low-fare airline SpiceJet went for Boeing, ordering 10 B737 planes worth a total of 700 mln usd.

At the show, Honeywell announced a deal worth up to 4.0 bln usd to provide auxiliary power units for Airbus.

Honeywell's HGT1500 auxiliary power unit would be used in the new long-range widebody A350 aircraft, which is scheduled for launch in 2010 to compete with Boeing Co's 787 Dreamliner.

The 4.0 bln usd value is estimated over the life of the program.

Korean Aerospace Industries also announced it had signed a 1 bln usd contract with Airbus to develop jointly parts for the A350 commercial jet.

Under a memorandum of understanding, Airbus selected the Korean firm as a "risk sharing partner" in its A350 program. The deal covers wing and fuselage components.

Korea Aerospace also signed a separate 80 mln usd contract to supply fuselage panels for Airbus' A321 plane by 2010.

Asian Aerospace this year had 940 exhibitors from 43 countries and 153 delegations from 43 countries. There were also more than 34,300 trade participants from 89 countries.

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