Dubai Air Show:Gulf States Flash the Cash

More than aircraft was on display at the Dubai Air Show,which ended on Sunday.The show took place at the new Al Maktoum International Airport,midway between Dubai and Abu Dhabi in the United Arab Emirates.It was evident that the airlines of the Gulf States have become the dominant force in the commercial aviation sector as they made their sweeping purchases at the DAS.
The Persian Gulf airlines have limited local business.They largely cater to international travelers,who use their desert hubs for single stop globetrotting.Boeing got 86% of its backlog for the new 777X wide-body jet from Gulf States carriers;while Airbus gets more than half its orders from Emirates Air,the world's biggest international airline.Emirates made 75.6 billion dollars of purchases at the airshow;even the cut rate carrier FlyDubai bought 111 Boeing 737s for 8.77 billion.Etihad Airways bought 25 777Xs and 30 787-10 Dreamliners from Boeing,plus 50 Airbus A350s and 36 A320neos for 45 billion,and Qatar Air plunked down 21.7 billion for 50 777X and 13 Airbus A330-200 cargo planes.
And there is no end in sight for this insatiable buying.Air transport has become a big part of the Gulf States' plan to diversify thier economies away from oil and gas.
Overall,Boeing sold 101.5 billion of aircraft at the airshow,edging EADS subsidiary Airbus for the most business acquired.What's incredible here is,the fulcrum used to be the Paris Air Show,said CNBC analyst Jim Cramer.Boeing's been the best-performing stock in the Dow.It went up 86.7% this year.The 777 is a money plane.They're gonna make a fortune on each plane.We're in year 2 of a 7-year aircraft cycle.
Boeing is America's greatest manufacturer.CEO Jim McNerney has got a fantastic team.All we could think about for a period of months was,the Dreamliner ain't working.You can't get a Dreamliner until 2020.I'll bet they come back from Dubai with a 10-year wait for a Dreamliner,the voluble Jim Cramer speculated.
Boeing(BA),European Aeronautic Defence and Space Company(Euronext:EAD)

Asia This Day:Qantas and Emirates Join Forces;Japanese Hiring Up

Japan's Tankan business confidence survey was up less than expected,from -12 in February to -8 in March,although it was the best quarterly improvement in two years.At the same time,China also reported a slight miss in estimates as the Purchasing Managers Index rose to 50.9 in March from 50.1 in February.HSBC's China PMI reading rose to 51.6 from 50.4,a little stronger improvement than the government's version.
Asian markets were lower on the mildly disappointing data,with the MSCI Asia-Pacific index falling 0.74% in early Monday trading.Markets in Hong Kong,Australia and New Zealand remain closed till Tuesday for the Easter holiday.
Chinese authorities told Beijing and Shanghai to place new restrictions on home buying in an attempt to limit skyrocketing prices.Homeowners were not to be granted credit to buy second or third homes.
Australia's airline Qantas and the UAE's Emirates Air have inaugurated their new alliance with a symbolic first flight .It will now be possible for Qantas passengers to fly to 65 international destinations from Melbourne and Sydney with one connecting flight in Dubai,as opposed to only five destinations in a previous alliance with British Airways.This will shave two hours off of flights to Europe.
Bookings to Europe are up six-fold on the new routes,which Goldman Sachs believes will be worth about Australian 90 million dollars to Qantas-or US 94 million.Qantas has cut its deficit from A262 million to A91 million in the first half of the fiscal year on retiring old planes and cutting unprofitable routes.CEO Alan Joyce has pledged to return the carrier to profitability.
For the first time in three years,Japan Airlines graduated about a thousand new hires in a JAL hangar in Tokyo.The workers stood stock-still in formation at the ceremony Monday.
Nomura Securities has hired the most new graduates in four years on the strength of the banking industry.