Flyhigh Magazine

Commercial aviation orders dominate deals at Dubai Airshow 2023

The largest ever edition of Dubai Airshow 2023 opened today at Dubai World Central (DWC), Dubai Airshow site, with a royal tour led by His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President, Dubai Civil Aviation Authority; Chairman, Dubai Airports; Chairman And Chief Executive, Emirates Airline And Group, taking government leaders and senior industry stakeholders through the static aircraft display and main exhibition.

The industry mega-event gathered key players from across aerospace, space and defence for the 18th edition, ready to redefine the future of the industries. It runs until 17th November 2023 and has more than 1,400 exhibitors from over 95 countries and more than 190 aircraft on static display.

During day one, a significant amount of orders and deals were announced, including a multi-billion dollar commercial order from Emirates, backed by air travel demand returning strongly to reach pre-pandemic levels.

Emirates announced an order of 95 wide-body aircraft, committing to additional Boeing 777-9s, 777-8s, and 787s, worth US$ 52 billion. Low-cost carrier FlyDubai also confirmed an $11 billion order for 30 Boeing 787-9 Dreamliners, the first wide-body aircraft in its fleet, SunExpress, the Turkey-based low-cost carrier, placed a firm order for 45 narrow-body 737 MAX jets to be delivered between 2029 and 2035, with options or purchase rights for another 45, and EgyptAir ordered its first Boeing 737 MAX aircraft, as the airline will take delivery of a total of 18 737 MAXs as part of a lease agreement with Air Lease Corporation (ALC).

Another milestone order was made by airBaltic, the Latvian national airline, which will see it become the largest Airbus A220 customer in Europe, following the confirmation of an incremental order for an additional 30 A220-300s, taking the airline’s total firm orderbook to 80 aircraft.

Timothy Hawes, Managing Director of Tarsus Middle East, said: “Today was a true testament to the continued growth we have seen across the industry and serves as the perfect platform to showcase the next-generation features and innovative technologies that will ensure an efficient and sustainable future. Day one has seen a series of landmark orders, deals and launches take place, and we look forward to seeing more over the coming days as industry players from across the world continue to gather in Dubai and collaborate to define the future for aerospace.”

With an increased focus on Space at this edition of Dubai Airshow, the UAE Space Agency led the largest space pavilion in the exhibition’s history to date, reflecting its commitment to enhancing and consolidating the UAE’s position in this vital sector. Here, Sultan Al Neyadi and Hazza Al Mansouri, the first two astronauts from the United Arab Emirates were present at the Mohammed Bin Rashid Space Centre stand, showcasing the pioneering UAE space missions.

Dubai Airports’ 2023 forecast sees DXB soar beyond 2019 traffic to reach 86.8m

Propelled by strong growth throughout the first three quarters of the year and anticipation of an exceptional surge in guest numbers in the final quarter, Dubai Airports is forecasting annual passenger traffic at Dubai International (DXB) to reach 86.8 million – surpassing 2019 traffic.

DXB commenced the second half of 2023 with its growth story continuing unabated, with average monthly traffic reaching 7.6 million, tracking pre-pandemic levels throughout the third quarter. The world’s largest hub recorded 22.9 million passengers in Q3 – the highest quarterly traffic since 2019, taking the total year-to-date traffic for the first nine months of the year to 64.5 million passengers, up 39.3% compared to the same period in 2022 and 1% above 2019.

“We’re thrilled but not entirely surprised that DXB is all set to surpass the pre-pandemic milestone well ahead of our initial projections by almost a year. Our outlook for the remainder of this year and the next remains optimistic. Teaming up with our strategic partners, we’re ready for the challenge to continue to exceed guest satisfaction amidst the continuous surge in traffic,” said Paul Griffiths, CEO of Dubai Airports.

He added: “Our team embarked on a remarkable journey, navigating fresh challenges during the recovery period and swiftly revitalising the business. Instead of settling, we’re dedicated to exploring inventive solutions, reimagining traditional concepts, integrating state of the art technology, and addressing the mammoth challenge of sustainability. Events like the Dubai Airshow present the ideal platform to recognise accomplishments and foster future growth. This edition is clearly playing a critical role in forging the path for the industry’s future.”

Future Outlook

Dubai Airports is expecting record-breaking numbers to continue in Q4 and 2024. To accommodate growth and to achieve the company’s ambition of revolutionising the guest journey at DXB, Dubai Airports is undertaking a strategic project to expand infrastructure capacity while enhancing operational efficiency. With a current capacity of 100 million passengers annually at DXB, the deployment of innovative technology, expansion and refurbishment of existing infrastructures and more efficient use of its space and resources is expected to propel the airport’s capacity to 120 million.

As Dubai tops the list of cities with the highest spending by international visitors with a total earning of $29.4bn[1], and the Emirate at the forefront of deploying the latest technologies, Dubai Airports has continued to work closely with its stakeholders to provide guests the experience they expect from Dubai.

Top destinations

With 8.9 million passengers in the first nine months of the year, India was DXB’s top country destination in terms of traffic volume, followed by Saudi Arabia with 4.8 million passengers, and the UK (4.4 million passengers). Other country destinations of note include Pakistan with 3.1 million passengers, the US (2.7 million) and Russia (1.8 million). The top cities by traffic were London (2.7 million passengers) and Riyadh (1.9 million), closely followed by Mumbai (1.8 million) and Jeddah (1.7 million passengers).

Performance

DXB's baggage handling system processed a total of 57.5 million bags in 2023 with a success rate of 99.8% - a rate of 2.5 mishandled bags per 1,000 passengers - no mean feat for the world's biggest hub for international traffic. In terms of baggage delivery on arrival, 91% of all baggage was delivered within 45 minutes to the guests. The baggage volume in 2023 represents 106.07% of the 2019 baggage volume at DXB.

The average waiting time at passport control queues was less than 11 minutes for 96.4% of the arriving passengers and 95.1% of passengers queued for less than six minutes at departure passport control. The average queue times at security-check on departures was less than four minutes for 98.4% of total passengers.

Cargo

Cargo continued to gain momentum in the third quarter registering a surge of 12.3% year on year, to reach 446,400 tonnes. The strong performance this year has helped level out a double-digit contraction in cargo recorded at the end of last year. The hub recorded 1.3 million tonnes of cargo in the first nine months of the year, registering a minor decline of under 1%.

Flights

Flight movements in Q3 surged by 5.1% in the third quarter to reach 106,000. DXB handled 308,000 in total flight movements between January and September, up 25.2% year-on year.

Saudia Technic and Airbus Helicopters sign an agreement to set up a regional authorized Service center

During the Dubai Air Show, Saudia Technic and Airbus Helicopters have signed a memorandum of agreement for the creation of an authorized service center in the Kingdom of Saudi Arabia to support the civil helicopters in operation in the region.

"The signing of this agreement testifies to our dedication to continuously improve our customers' satisfaction in the Middle East but also globally,” said Olivier Michalon, Executive Vice President of Global Business at Airbus Helicopters. “Saudia Technic is a proven maintenance provider and I look forward to exploring new opportunities to strengthen our collaboration with them in the future. We are both commited to expanding the helicopter ecosystem in the Kingdom of Saudi Arabia."

Capt. Fahd Cynndy, CEO of Saudia Technic, highlighted the significance of this collaboration with Airbus Helicopters. “This is not just an agreement but a milestone that aligns perfectly with the Kingdom's Vision 2030 and the national aviation strategy. Saudia Technic is not only expanding its capabilities but is also setting new benchmarks in the MRO sector,” remarked Capt. Cynndy.

This strategic agreement marks a pivotal moment for Saudia Technic, reinforcing its commitment to delivering top-tier helicopter maintenance services and solidifying its leadership in the MRO landscape. Simultaneously, Airbus Helicopters expands its footprint in the Middle East, aligning with local partners for fleet modernization, maintenance, repair, and overhaul, and supporting the region with Airbus Helicopters Arabia.

The Approved Service Center status by Airbus Helicopters will bring a plethora of benefits, including enhanced response times, streamlined maintenance processes, and significantly reduced downtimes for operators across the region. This collaboration not only marks a significant step for Saudia Technic and Airbus Helicopters but also signifies a remarkable achievement in line with Saudi Arabia’s Vision 2030, showcasing the Kingdom's growing influence and capabilities in the global aviation sector.