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
Start your day with The Independent, sign up for daily news emails
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders
Heston Blumenthal to cook up a spice odyssey for British astronaut manning the International Space Station

UK's Major Tum to blast off on a spice odyssey

Nothing but the best for British astronaut as chef Heston Blumenthal cooks up his rations
John Harrison's 'longitude' clock sets new record - 300 years on

‘Longitude’ clock sets new record - 300 years on

Greenwich horologists celebrate as it keeps to within a second of real time over a 100-day test
Fears in the US of being outgunned in the vital propaganda wars by Russia, China - and even Isis - have prompted a rethink on overseas broadcasters

Let the propaganda wars begin - again

'Accurate, objective, comprehensive': that was Voice of America's creed, but now its masters want it to promote US policy, reports Rupert Cornwell
Why Japan's incredible long-distance runners will never win the London Marathon

Japan's incredible long-distance runners

Every year, Japanese long-distance runners post some of the world's fastest times – yet, come next weekend, not a single elite competitor from the country will be at the London Marathon
Why does Tom Drury remain the greatest writer you've never heard of?

Tom Drury: The quiet American

His debut was considered one of the finest novels of the past 50 years, and he is every bit the equal of his contemporaries, Jonathan Franzen, Dave Eggers and David Foster Wallace
You should judge a person by how they peel a potato

You should judge a person by how they peel a potato

Dave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
Beige is back: The drab car colours of the 1970s are proving popular again

Beige to the future

Flares and flounce are back on catwalks but a revival in ’70s car paintjobs was a stack-heeled step too far – until now
Bill Granger recipes: Our chef's dishes highlight the delicate essence of fresh cheeses

Bill Granger cooks with fresh cheeses

More delicate on the palate, milder, fresh cheeses can also be kinder to the waistline
Aston Villa vs Liverpool: 'This FA Cup run has been wonderful,' says veteran Shay Given

Shay Given: 'This FA Cup run has been wonderful'

The Villa keeper has been overlooked for a long time and has unhappy memories of the national stadium – but he is savouring his chance to play at Wembley
Timeless drama of Championship race in league of its own - Michael Calvin

Michael Calvin's Last Word

Timeless drama of Championship race in league of its own