The Farnborough Airshow opens on Monday in the face of turbulence from Britain’s shock decision to exit the European Union.
The event held every two years southwest of London traditionally features a battle between US titan Boeing and Europe’s Airbus for supremacy on the order books.
Organisers know there is little chance to beat the record US$201 billion of business - both firm airplane orders and commitments - clinched in 2014, with the industry beset by major production backlogs.
Ahead of the meeting, some airlines have posted profit warnings linked to expected fallout from Brexit.
Britain’s referendum to quit the 28-nation European Union has cast a shadow over the air show that runs from Monday until Sunday.
The vote sent financial markets tanking and sparked worries about global economic fallout that could weigh on demand for airline travel.
Brexit “is likely to have an impact over the medium term” on demand for new planes, independent aviation analyst John Strickland warned.
“Order books are currently full but if demand softens then ultimately this could lead to reduced orders or possibly some cancellations,” he told AFP.
However, Argon Consulting analyst Jean-Louis Dropsy forecast Brexit would not affect the sector, arguing it relies more on keen demand from outside Europe - and particularly from emerging markets.
“Brexit should have no impact on the global industry, which is driven mainly by air traffic growth, mainly in Asia, India and the Middle East,” he said.
Removal from the single European airspace could however lead to airlines passing on higher taxes to passengers, in turn curtailing demand for aircraft in the long run.
Since the June 23 referendum result, British Airways owner IAG and British no-frills airline EasyJet have issued profit warnings.
And while incidents such as the recent EgyptAir plane crash and the terrorist attacks on Brussels and Istanbul airports have also taken their toll on the sector, ultra-low oil prices have slashed fuel costs for airlines.
The aerospace industry is already being dogged by a record backlog for orders of planes, which - alongside weaker demand from airlines - contributed to a 30-percent decline in aircraft purchases last year.
“I’m not expecting any big orders this time around as most major airlines already have significant backlogs of already-ordered aircraft,” noted Strickland.
Kepler Cheuvreux analysts noted that Airbus and Boeing could still deliver surprises.
“The consensus is that few new orders are expected at the show,” they wrote in a note to clients.
“We are nevertheless wary of such a cautious view, arguing that Boeing celebrating its 100th anniversary at the show is likely to make a splash with some key orders.
“In response, we expect Airbus to have kept a few key orders for announcement at the show,” they added.
Orders could feature also for Bombardier’s fuel-efficient C Series jetliner as the Canadian firm looks to challenge the dominance of Airbus and Boeing in medium-range, single-aisle aircraft.
US-based Delta Air Lines in April placed an order for 75 CS100 Bombardier aircraft with an option to purchase 50 more in a deal worth $5.6bn.
Stephane Albernhe, analyst at Archery Strategy Consulting, predicted announcements from Bombardier at Farnborough.
“If they manage to save this programme, we will not have a duopoly,” she said.
So far this year, Boeing is leading the orders race with Airbus, winning 276 firm orders since the start of the year compared with its European rival’s 183.
It comes as the industry faces a record backlog of about 13,400 civilian aircraft orders - 94 per cent of which are for the world’s two leading planemakers.
Whatever the outcome for orders, this week’s show will be lit up by the F-35 fighter jet carrying out a flypast over Farnborough, two years after the world’s most expensive warplane’s appearance was cancelled owing to engine problems.
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WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
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Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
