November 16, 2009 9:00 AM
- Text
Dubai Air Show Has Big Companies Dreaming
(MoneyWatch) 
The last Dubai Air Show two years ago saw several major contracts announced by the United Arab Emirates and other Middle Eastern states. Qatar ordered C-17 transports and the UAE announced deals for missile defense systems. The total values of these and other deals was in the billions. It is assumed that this year a similar amount of contracts will be announced.
This means that the Air Show will see representation from all of the big United States and European defense contractors. The UAE and other oil states have shown a willingness to purchase from a variety of sources; not just from one country or another. The arms build up by Iran including their nuclear program has also raised demand from these countries.
Because of this interest the air show has expanded its facilities as over thirty-seven countries will be sending military delegations. There will be demonstrations of several advanced fighters including the F-22 even though right now it is not available for foreign sales.
Boeing, Northrop Grumman and Lockheed Martin are all hoping along with EADS to balance off the upcoming cuts in domestic spending with greater overseas sales. This requires substantial marketing efforts of which this air show is key. The competition for these contracts is becoming more intense as while there are several to be awarded once they are the market will die down again.
Unfortunately for EADS and Boeing due to the general state of the world economy there are few major deals for airliners to be announced. That market has been struggling of late and Boeing still is not able to deliver the 787 on its original schedule further disrupting sales. That market may take a few more years to sort itself out and the days of large new orders may have to wait until then.
Thus the Airshow despite its importance as a marketing tool may see little or no major action. All of the companies and countries have to attend though. Any deal announced will help the companies involved as the world's defense contractors turn to overseas customers in a bid to make up for lack of new domestic buying.
The last Dubai Air Show two years ago saw several major contracts announced by the United Arab Emirates and other Middle Eastern states. Qatar ordered C-17 transports and the UAE announced deals for missile defense systems. The total values of these and other deals was in the billions. It is assumed that this year a similar amount of contracts will be announced.This means that the Air Show will see representation from all of the big United States and European defense contractors. The UAE and other oil states have shown a willingness to purchase from a variety of sources; not just from one country or another. The arms build up by Iran including their nuclear program has also raised demand from these countries.
Because of this interest the air show has expanded its facilities as over thirty-seven countries will be sending military delegations. There will be demonstrations of several advanced fighters including the F-22 even though right now it is not available for foreign sales.
Boeing, Northrop Grumman and Lockheed Martin are all hoping along with EADS to balance off the upcoming cuts in domestic spending with greater overseas sales. This requires substantial marketing efforts of which this air show is key. The competition for these contracts is becoming more intense as while there are several to be awarded once they are the market will die down again.
Unfortunately for EADS and Boeing due to the general state of the world economy there are few major deals for airliners to be announced. That market has been struggling of late and Boeing still is not able to deliver the 787 on its original schedule further disrupting sales. That market may take a few more years to sort itself out and the days of large new orders may have to wait until then.
Thus the Airshow despite its importance as a marketing tool may see little or no major action. All of the companies and countries have to attend though. Any deal announced will help the companies involved as the world's defense contractors turn to overseas customers in a bid to make up for lack of new domestic buying.
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