Flybe's $1.3bn order fuels hopes of airline recovery

The aviation industry showed clear signs of recovery from recession with another slew of orders at the biennial Farnborough International Air Show in Hampshire yesterday.

The British no-frills carrier Flybe joined the list of major buyers as it placed a $1.3bn (£853m) order for 35 Embraer 175 aircraft from the Brazilian maker.

Boeing said it had agreed its second big order this week to supply Air Lease Corporation (ALC) with 54 next-generation Boeing 737-800s. The first are due for delivery in 2012, with an option for another six to follow. The US manufacturer also announced a commitment from Royal Jordanian Airlines for three 787-8s, which have a list price of about $500m. The Irish leasing company Avalon is also spending $920m on 12 Boeing 737s.

Meanwhile, the world's biggest plane-maker, Airbus, said it had reached a $5.7bn deal to supply Hong Kong Airlines with 25 aircraft – 15 of which will be the A350XWB model that is still in development.

Yesterday's deals followed $18bn of new orders confiirmed on the first day of the air show on Monday. Although unlikely to meet the record-breaking $89bn of deals signed at Farnborough in 2008, the aviation industry is relieved at having bettered the woeful $7bn total sales at last year's biennial air show in Le Bourget, France.

Flybe, based at Exeter Airport, will take delivery of its first new Embraer jet in September next year. The order is scheduled for completion by March 2017, although Flybe has an option to add another 105 aircraft to the deal, taking the total value up to $5bn.

The new aircraft are central to Flybe's European expansion plans and part of its commitment to using lower-emission aeroplanes, said the chief executive, Jim French.

"We are securing an aircraft that fits with our stated aim of furthering our position as the leading regional airline in Europe," he added. "This is a good time to buy aircraft and fits Flybe's long tradition of ground-breaking deals which power the long-term growth of the company."

On Monday, Boeing said Dubai-based Emirates had agreed to buy 12 777-300s, with a list price of $2.6bn, while General Electric Capital Aviation Services (GECAS) had placed a $3bn order. Meanwhile, Airbus signed a $4.4bn deal with ALC for 20 A321s and 31 A320s, a $4.9bn contract with GECAS for 60 A320s, and a third deal with Aeroflot for 11 A330s. Canada's Bombardier also announced a $122m order from Qatar Airways.

The flurry of sales follows forecasts from the International Air Transport Association that the global aviation sector would return to a $2.5bn profit this year after suffering losses of $9.4bn as the recession buffeted the industry in 2009.

Alongside the new orders, Boeing's main focus at the Farnborough show is the British debut of its lean, green 787 Dreamliner – the much-delayed composite aircraft scheduled for its first deliveries later this year.

It has also showing off a hydrogen-powered Phantom Eye unmanned spy plane. Its staunch rival Airbus is demonstrating its delayed A400M military transporter, and the vast A380 superjumbo which can carry almost 1,000 passengers.

Suggested Topics
PROMOTED VIDEO
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

AIFMD Business Analyst / Consultant - Investment Management

£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...

Business Analyst Solvency II SME (Pillar 1, 2 & 3) Insurance

£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...

Manager - SAS - Data Warehouse - Banking

£350 - £365 per day: Orgtel: Manager, SAS, Data Warehouse, Banking, Bristol - ...

SQL DBA/Developer

£500 per day: Harrington Starr: SQL DBA/Developer
 SQL, C#, VBA, Linux, SQL Se...

Day In a Page

Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home
Lauded therapist Harley Mille still in limbo as battle to stay in Britain drags on

Lauded therapist still in limbo as battle to stay in Britain drags on

Australian Harley Miller is as frustrated by court delays as she is with the idiosyncrasies of immigration law
Lewis Fry Richardson's weather forecasts changed the world. But could his predictions of war do the same?

Lewis Fry Richardson's weather forecasts changed the world...

But could his predictions of war do the same?
Kate Bush asks fans not to take photos at her London gigs: 'I want to have contact with the audience, not iPhones'

'I want to have contact with the audience, not iPhones'

Kate Bush asks fans not to take photos at her London gigs
Under-35s have rated gardening in their top five favourite leisure activities, but why?

Young at hort

Under-35s have rated gardening in their top five favourite leisure activities. But why are so many people are swapping sweaty clubs for leafy shrubs?
Tim Vine, winner of the Funniest Joke of the Fringe award: 'making a quip as funny as possible is an art'

Beyond a joke

Tim Vine, winner of the Funniest Joke of the Fringe award, has nigh-on 200 in his act. So how are they conceived?
The late Peter O'Toole shines in 'Katherine of Alexandria' despite illness

The late Peter O'Toole shines in 'Katherine of Alexandria' despite illness

Sadly though, the Lawrence of Arabia star is not around to lend his own critique
Wicken Fen in Cambridgeshire: The joy of camping in a wetland nature reserve and sleeping under the stars

A wild night out

Wicken Fen in Cambridgeshire offers a rare chance to camp in a wetland nature reserve
Comic Sans for Cancer exhibition: It’s the font that’s openly ridiculed for its jaunty style, but figures of fun have their fans

Comic Sans for Cancer exhibition

It’s the font that’s openly ridiculed for its jaunty style, but figures of fun have their fans
Besiktas vs Arsenal: Five things we learnt from the Champions League first-leg tie

Besiktas vs Arsenal

Five things we learnt from the Champions League first-leg tie
Rory McIlroy a smash hit on the US talk show circuit

Rory McIlroy a smash hit on the US talk show circuit

As the Northern Irishman prepares for the Barclays, he finds time to appear on TV in the States, where he’s now such a global superstar that he needs no introduction
Boy racer Max Verstappen stays relaxed over step up to Formula One

Boy racer Max Verstappen stays relaxed over step up to F1

The 16-year-old will become the sport’s youngest-ever driver when he makes his debut for Toro Rosso next season
Fear brings the enemies of Isis together at last

Fear brings the enemies of Isis together at last

But belated attempts to unite will be to no avail if the Sunni caliphate remains strong in Syria, says Patrick Cockburn
Charlie Gilmour: 'I wondered if I would end up killing myself in jail'

Charlie Gilmour: 'I wondered if I'd end up killing myself in jail'

Following last week's report on prison suicides, the former inmate asks how much progress we have made in the 50 years since the abolition of capital punishment