Pandemic-hit airline industry to regroup at Dubai Airshow

The Dubai Airshow, the largest aviation trade event to be held since the pandemic, will kick off in Dubai on Sunday.

Two major European shows - the Paris Airshow in Le Bourget in 2021 and Britain's Farnborough International Airshow in 2020 - were cancelled, making this an opportunity for the aerospace industry to get together after two challenging years.

The biennial Dubai Airshow is famous for record-breaking, multi-billion-dollar commercial aircraft deals signed between airlines and manufacturers but this year's edition is expected to be different.

The International Air Transport Association (IATA) is not expecting "much in terms of large aircraft orders" at the upcoming Dubai Airshow.

"I'm not aware of any major announcements that are likely to be made and certainly the CEOs that I've spoken to have taken a cautious approach," Willie Walsh, Director-General of IATA said during a media briefing last week.

The event comes at a time when the financially battered airline industry is starting to emerge from the pandemic, looking to rebuild flight networks and review fleet plans - as they phase out older, less fuel-efficient aircraft.

The show will also see a significant attendance of defence firms with 20 countries, including Brazil, Russia, France and Israel, setting up their own country pavilions. According to organisers, the event will feature 1,200 exhibitors, and at least 160 commercial and military aircraft will be on display on the tarmac.

Much of the attention will be on Boeing's much-delayed 777X jet, which is making its international debut during the event. The aircraft was originally expected to go into service in 2019, but has been hit with several delays, causing the manufacturer to slide the date to late 2023 at the earliest.

Dubai-based Emirates, which is the launch customer, has repeatedly lambasted Boeing over the delay of the twin-engine jumbo. Last month, it warned that the uncertainty would cause significant disruption for one of the world's biggest carriers. Emirates' President Sir Tim Clark said that he did not know when the first of the 777X jets Emirates had ordered would arrive.

Boeing and Emirates will be holding talks during the course of the event regarding the delivery of the aircraft. Emirates had placed the mega order for 777X jets along with 30 of the 787 Dreamliner wide-body jets as part of its strategy to replace the current 777 jets that are the backbone of its wide-body fleet. But it is now considering exchanging some of its 777X jets on order for smaller 787 Dreamliners amid delays in the new aircraft's debut, the airline's chief executive, Sheikh Ahmed, had said in May.

Emirates is not the first client looking to cut down on its initial order. The delay in rolling out the aircraft has hurt Boeing, with its 777X order tally falling from 309 in 2019 to 191 a year later. Qatar Airways, Singapore Airlines and Cathay Pacific had also placed orders for the aircraft.

The 777X will be the world's largest and most efficient twin-engine jet, delivering 10% better fuel use, emissions and operating costs compared to its competitors, according to Boeing.

The aerospace trade show also comes amid rising oil prices, with prices hovering above $80 per barrel, adding more challenges for the airline industry.

Aviation fuel makes up around a quarter of an airline's cost. Analysts warn that the constant rise in oil prices could impede the recovery for carriers, as they try to come out of the woods.