Farnborough reels as Airbus slashes superjumbo output

Farnborough reels as Airbus slashes superjumbo output
An Airbus A380 aircraft is seen beside the runway during the Farnborough Airshow. (AFP)
Updated 13 July 2016

Farnborough reels as Airbus slashes superjumbo output

Farnborough reels as Airbus slashes superjumbo output

FARNBOROUGH: The aircraft sector hit turbulence as European giant Airbus slashed output of its A380 superjumbo because of weak demand, putting a lid on plane orders generally at Farnborough.
European planemaker Airbus revealed late Tuesday at Farnborough — one of the world’s largest civilian and defense airshows — that it would halve production of its enormous A380 to one a month from 2018.
CEO Tom Enders said Wednesday he hoped the cutbacks would last for “just a year or two,” adding he remained optimistic over the jet’s prospects.
“We are all pretty up optimistic about the longer term prospects of the A380 and I hope this is just a year or two and then we can raise production rates again,” Enders said at the airshow, south of London.
“We decided back in 2000 to launch the A380 (and) little did we know what the world would look like in 2010, 2015 or 2016.”
He added: “We believe in this aircraft, the company knows what to do. We are proactive and I am quite confident that we will be able to (again) raise production rates.”
Enders said Airbus needed “to work harder to convince airlines that this aircraft really pays off if you can fill it.”
“It’s a real money making machine,” he insisted.
In what has been a relatively quiet show for new orders of planes generally, Airbus’ US rival Boeing on Wednesday inked previously-announced jet deals worth a total of $3.79 billion (3.42 billion euros) with Air Europa of Spain and Ruili Airlines of China.
Airbus on Tuesday revealed firm orders for 129 aircraft worth a combined $15.6 billion before the usual discounts are applied.
The orders included a vast $12.5-billion deal for 100 single-aisle A321neo jets from Malaysia’s AirAsia.
However the shock A380 announcement has stolen the show and reminded participants about the gloomy economic backdrop.
The A380 is the world’s largest civilian airplane, carrying up to 544 passengers in a four-class configuration or 853 in just a single class.
The jet has a list price of $432.6 million but it has not registered any sales yet at the week-long Farnborough event.
Dubai’s Emirates airline is the biggest client for the A380, operating 81 with another 142 on order.
“Airbus still continues to face the challenge of securing new orders for the A380,” independent aviation analyst John Strickland said.
“Its best customer, Emirates, would order many more but only if Airbus upgrades its... capability. This is something that Airbus is reluctant to do when it is not making money on the aircraft.”
Strickland added that airlines have a wide choice of large-capacity aircraft built by Boeing and Airbus that are cheaper than the A380 because they require only two engines, not four.
The superjumbo was launched in 2007 and has since received 319 orders from 18 global airlines, of which it still has yet to deliver 126.
Jefferies analyst Sandy Morris said the A380 also faced competition from Boeing’s 777-300ER long-range aircraft.
“The A380 simply ran into a very good all-round competitor in the B777-300ER,” Morris told AFP, adding that Airbus’ target markets of the Indian sub-continent and the wider Asia region has a limited appetite for the superjumbo.
“Those markets have to grow to the point where such a large aircraft is needed,” he said.


Dubai completes first phase of e-commerce free zone

Dubai completes first phase of e-commerce free zone
Updated 18 April 2021

Dubai completes first phase of e-commerce free zone

Dubai completes first phase of e-commerce free zone
  • It includes 470,000 square feet of real estate
  • The e-commerce sector in the Gulf is booming with the forced closure of bricks and mortar shops during the pandemic giving the industry a further boost

DUBAI: The first phase of a new Dubai fee zone dedicated to e-commerce has been completed.
It includes 470,000 square feet of real estate.
The 3.2 billion dirhams ($871 million) Dubai CommerCity project also includes 145,000 square feet of e-commerce logistics units and warehouses in a cluster managed and operated by Hellmann Worldwide Logistics and DHL.
It has leased 51 percent of the logistics warehouses to companies operating across IT, fashion, jewelry and electronics.
“The launch of Dubai CommerCity aims to lead the future of e-commerce business in the region,” said Sheikh Ahmed Bin Saeed Al-Maktoum, chairman of the Dubai Airport Freezone Authority. “The project has been thoroughly studied not only to provide foundational solutions, but also to stimulate and support business and prosperity at a time when the sector is going through peak growth.”
The e-commerce sector in the Gulf is booming with the forced closure of bricks and mortar shops during the pandemic giving the industry a further boost.
The free zone provides opportunities for manufacturers, distributors and global e-retailers while offering tax and investment incentives, it said.
It is divided into three main clusters — Business, Logistics and Social.


Emirates NBD, Etihad Credit Insurance ink deal to ease trade finance access for UAE businesses

Emirates NBD, Etihad Credit Insurance ink deal to ease trade finance access for UAE businesses
Updated 18 April 2021

Emirates NBD, Etihad Credit Insurance ink deal to ease trade finance access for UAE businesses

Emirates NBD, Etihad Credit Insurance ink deal to ease trade finance access for UAE businesses
  • The deal will help the UAE lender to reduce any risks that may be associated with credit facilities

DUBAI: UAE export credit company, Etihad Credit Insurance (ECI), has signed an agreement with Emirates NBD to improve liquidity of UAE exporters by easing their access to credit facilities.
The deal will help the UAE lender to reduce any risks that may be associated with credit facilities, so businesses can pursue export and expansion opportunities, according to a joint statement.
More than 80 per cent of world trade relies on trade finance, ECI’s chief Massimo Falcioni said, and the agreement will allow Emirates NBD to offer innovative financial solutions to their clients.
Governments in the Gulf have been investing in strengthening local businesses as a strategy to recover from the COVID-19 pandemic, and to gradually veer away from oil-dependence.

 

 


Italian fashion brand Diesel launches online shopping platform in KSA, UAE

Italian fashion brand Diesel launches online shopping platform in KSA, UAE
Updated 18 April 2021

Italian fashion brand Diesel launches online shopping platform in KSA, UAE

Italian fashion brand Diesel launches online shopping platform in KSA, UAE
  • The website will feature new collections of the fashion line, as well as exclusive deals for online shoppers

DUBAI: Italian fashion retailer Diesel has launched its own e-commerce platform for customers in Saudi Arabia and the UAE, the company said on Sunday.
The website will feature new collections of the fashion line, as well as exclusive deals for online shoppers. It will also offer free shipping for customers in both countries.
Diesel has been in the market for four decades and is known for its denim and casual fashion offerings.
The COVID-19 pandemic has created huge demand for online shopping in the Gulf, with many retailers accelerating their digital efforts to take advantage of it


Kuwaiti coffee delivery app raises $10m in new funding

Kuwaiti coffee delivery app raises $10m in new funding
Updated 18 April 2021

Kuwaiti coffee delivery app raises $10m in new funding

Kuwaiti coffee delivery app raises $10m in new funding
  • The funding was provided by Kuwaiti listed investment house Al Imtiaz Investment Group
  • COFE was conceived in 2017 by Kuwait-based founder Ali Al-Ebrahim, developed in Silicon Valley and launched in 2018

DUBAI: Kuwaiti coffee delivery app COFE has raised $10 million in new funding, which it aims to use to scale up its operations in Kuwait, Saudi Arabia, the UAE and the UK and to expand into Egypt and Turkey.
The funding was provided by Kuwaiti listed investment house Al Imtiaz Investment Group. COFE was conceived in 2017 by Kuwait-based founder Ali Al-Ebrahim, developed in Silicon Valley and launched in 2018.
“From its early days, COFE has shown tremendous potential as a unique offering that caters to discerning coffee connoisseurs and their consumption habits, while helping to grow and transform revenue streams for vendors. Our partners have recognized this and are confident in our ability to serve existing customers and vendors, while expanding into new markets,” Al-Ebrahim said in a press statement.
Zev Siegl, a co-founder of international coffee chain Starbucks, is also an adviser to COFE. “I am happy to collaborate with the COFE App team and proud of the success and development they’ve achieved,” Siegl told the Mubasher website in April 2019. “During my stay in Kuwait, I visited more than 20 coffee shops and I was impressed by the high level of service, innovation and the high demand on coffee shops which ensure that the COFE app market will keep on growing and will reach the international market very soon.”


Israel and Greece sign record defense deal

Israel and Greece sign record defense deal
Updated 18 April 2021

Israel and Greece sign record defense deal

Israel and Greece sign record defense deal
  • The agreement includes a $1.65 billion contract for the establishment and operation of a training center for the Hellenic Air Force

JERUSALEM: Israel and Greece have signed their biggest ever defense procurement deal, which Israel said on Sunday would strengthen political and economic ties between the countries.
The agreement includes a $1.65 billion contract for the establishment and operation of a training center for the Hellenic Air Force by Israeli defense contractor Elbit Systems over a 22-year period, Israel’s defense ministry said.
The training center will be modeled on Israel’s own flight academy and will be equipped with 10 M-346 training aircraft produced by Italian company Leonardo, the ministry said.
Elbit will supply kits to upgrade and operate Greece’s T-6 aircraft and also provide training, simulators and logistical support.
“I am certain that (this program) will upgrade the capabilities and strengthen the economies of Israel and Greece and thus the partnership between our two countries will deepen on the defense, economic and political levels,” said Israeli defense minister Benny Gantz.
The announcement follows a meeting in Cyprus on Friday between the UAE, Greek, Cypriot and Israeli foreign ministers, who agreed to deepen cooperation between their countries.