Friday, June 17, 2005

Airbus wins $6bn order from India

Airbus A320
India's skies are filling up with new private airlines


Fledgling Indian budget airline IndiGo has ordered 100 A320 jets from Airbus, the European planemaker said.
Although Airbus did not reveal the agreed price, the catalogue value of the planes is $6bn (£3.29bn).

IndiGo is not yet flying. Airbus said the new airline has "high-quality executives" and was sure to be "a successful new player".

Airbus also received orders for 20 A320s from Brazil's TAM and a further 10 from Mexico's ABC Aerolineas.

TAM also signed a non-binding commitment for 10 of the group's A350 planes which it hopes to launch later this year.

But, Indian airlines have emerged as big buyers at this year's Paris Air Show placing orders worth roughly $12bn.

India's strong economic growth has boosted the market for internal travel - both business and leisure - and the budget airline business model is catching on rapidly there.

New battleground

Industry analysts believe the India's aviation market is poised for 20% annual growth as private airlines multiply.

Both Airbus and rival US planemaker Boeing have benefited from big Indian orders at the Paris Air Show.

Boeing won an order from Jet Airways for at least 20 planes with a catalogue value of $2.8bn, made up of 737-800s and 777s.

Kingfisher, another low-cost carrier backed by beer magnate Vijay Mallya, ordered 15 aircraft worth up to $3bn from Airbus.

IndiGo is being backed by travel company InterGlobe Enterprises, and by entrepreneur Rakesh Gangwal, who was president and chief executive of US Airways until 2001.

"IndiGo is the result of extensive analysis and planning by very experienced airline executives and we're convinced it will be a successful new player," said Airbus chief executive Noel Forgeard.

BOEING v AIRBUS ORDERS
* Qatar Airways - 20 Boeing 777s worth $4.6bn
* Qatar Airways - up to 60 Airbus A350s worth $10.6bn
* ILF - 20 Boeing planes, including next generation 737, in $2.9bn deal
* Kingfisher - to buy "multiple" Airbus aircraft in a deal worth $2.5bn
* Jet Airways - 20 Boeing planes worth more than $2.8bn
* Jet Airways - 10 Airbus A330s for $1.5bn
* GECAS - 20 next generation Boeing 737s worth $1.1bn
* GECAS - 10 Airbus A350s worth $1.6bn
* ALAFCO -12 Airbus A350s worth $2.5bn
* IndiGo - 100 Airbus A320s in $6bn deal
* TAM - 20 A320s and eight A350s
* ABC Aerolineas - 10 Airbus A320s

Source: http://news.bbc.co.uk

Airlines test water-vapor sensing system

The day may come when aircraft collect water-vapor data around the world and weather balloons become a thing of the past, Colorado researchers say.

An air sampler developed by the University Corp. for Atmospheric Research, Boulder, Colo., plus a diode laser developed by SpectraSensors Inc., San Dimas, Calif., make up the Water Vapor Sensing System II, or WVSS II.

Water vapor sounds boring, but it's essential to almost everything that happens in the atmosphere, said retired researcher Rex Fleming, who designed the air sampler that also received U.S. federal funding.

Better water-vapor data can improve a host of weather-related forecasts -- including sudden storms that the Federal Aviation Administration estimates cost the U.S. airline industry $1 billion a year -- and long-term climate changes.

This month, 25 United Parcel Service aircraft based in Louisville, Ky., are comparing WVSS II data with that from traditional weather balloons and satellites, said the National Center for Atmospheric Research.

Other U.S. airlines as well as airlines in Australia, Germany, New Zealand and South Africa will also test WVSS II.

Source: Big News Network

Thursday, June 16, 2005

US extends biometric passport deadline

Washington has officially announced it will extend the deadline for visa-free EU countries to introduce biometric passports.

US officials informed a summit of G8 justice and home affairs ministers in Sheffield, UK, on Wednesday (15 June) that the deadline was to be put back.

The decision marks a significant shift in US policy, as authorities had earlier warned they would not extend the deadline for the second time.

Under the ruling, the 27 states that enjoy visa-free travel to the US will have one extra year to introduce full-scale biometric passports, according to the Financial Times.

They were orginally supposed to start issuing documents with special microchips containing genetic information about the passport holders by 26 October, or face visa obligations when entering the US.

But due to pressure from the American travel industry and the European Commission, Washington has agreed to accept passports with digital photos, as a substitute for biometric data.

It is still not clear what kind of provisions will be set for France and Italy, the only two countries still using laminated pictures for their citizens' travel documents.

Officials last night confimed that the French and Italian issue had been "addressed and resolved", while not making it clear if the two states would be granted visa-free access after October or not.

Source: euobserver.com

Luxury Marco Beach Ocean Resort Aims at 5th Diamond, Leverages The Concierge Assistant

Guest service streamlined by tapping guest histories to anticipate individual tastes, delight visitors

If you are flying to Southern Florida in your Gulfstream V executive jet and need a luxury 4-Diamond resort with an award winning chef and, by the way, a nearby airfield big enough to accommodate your plane, the Marco Beach Ocean Resort will probably be where you spend the night.

Marco Beach Ocean Resort is a 100-suite independent destination on Florida’s Marco Island built by the Gulf Bay Group of Companies to 5-Star, 5-Diamond standards. The property --with its own private Fiddler’s Creek golf club and deep-draft marina -- opened only eight months ago and already has one of the highest ratings Triple A grants and aims higher. Phillip Starling, Marco Beach Ocean Resort’s managing director, said, “We offer one of the most beautiful destinations in the world. With our entire management team experienced in operating luxury properties, our goal is to earn the AAA 5-Diamond designation soon as possible. At the top of the luxury market the differentiator is guest service; that is our focus. We stock guests’ rooms with their favorite foods and beverages, contact them before and after their stay, and track each person’s interests and activities in the property’s Concierge Assistant software system.”

“What attracted us to The Concierge Assistant was that it gives us power over our guest history information and puts that data to work in ways no property management system could,” said Starling. “The guest profiles we build in our concierge system contain all past stay information, as well as their off-property transportation requests, favorite restaurants, and travel details. We could even include a digital photo of the guest in their file to boost guest recognition. This is a tool that lets us know what guests will want before they ask, and is a key tool as we work toward earning our fifth diamond.”

Guest data is secured

The property’s guest service team contacts guests prior to their arrival to help plan their visit and ensure their itinerary of events is known by the resort. “We log each guest’s activities in The Concierge Assistant software; already knowing what they enjoy lets us offer suggestions that are tailored to their unique preferences. The system runs on the property’s networked server so all appropriate staff members can access a guest’s data at anytime; this guarantees we can answer questions from any touch point in the resort. Also, since The Concierge Assistant is property-based we do not have to worry about hackers or identity theft over the Internet.”

To provide the utmost in convenience the Marco Beach Ocean Resort contracts with a luggage transport company that picks up guests’ luggage at their homes and ships it directly to the property, relieving visitors of delays associated with airport security. “Our goal is to provide guests with a stress-free travel experience,” said Starling. “Our managers personally call each guest during their stay to judge the service they are receiving. Visitors tell us they relish being here more than at a larger flagged hotel because we make them feel important.” The resort also uses a ‘cartless’ housekeeping service and staff that operates from centralized closets to eliminate clutter in hallways, just as their guest services software eliminates clutter at the concierge desk.

One item at the top of most guest interest lists at the Marco Beach Ocean Resort is the property’s signature restaurant, Sale e Pepe. Featuring Northern Italian cuisine, its master chef, Alberto Varetto, who was featured at the James Beard Foundation, flies in ingredients directly from Italy to create a stunning dining experience. “Guests love Sale e Pepe and its 3,000-bottle wine cellar; which we just learned will be given an award in the August issue of Wine Spectator,” explained Starling. The property also offers relaxed dining at the Gator Grill at its Fiddler’s Creek golf club, as well as waterfront dining at Backwater Nick’s at the private Isle of Capri Marina. “When guests first reserve with us we create a personal profile for them in The Concierge Assistant system that tracks their dining preferences, on property and off, as well as, favorite tee times, and individual spa treatments,” Starling said. “We focus on customized service, name recognition and surpassing guest expectations. In addition to vacationing guests, we host many executive groups who value our high-tech meeting facilities and the wide variety of venues and activities we offer.”

Marco Beach Ocean Resort provides meeting space for professional and social groups of up to 100 attendees and prides itself in delivering the highest quality working environment for visiting business people. To host large parties in style for special occasions the resort features its beautiful Gulf Ballroom on the beach facing the ocean. “Many groups prefer to fly directly in to Marco Island’s large private airfield, attend meetings, and play golf, take cruises, or fish after their business is wrapped up,” said managing director Phillip Starling. “Some companies buy out one of our restaurants one evening, and then have other events offsite at Fiddler’s Creek or the marina on subsequent days. We provide limo service from our own company to maintain the highest service level and flexibility. Some luxury properties offer a ‘Club Level’ with special consideration for their highest-rated guests; we provide that level of service for all our guests.”

In a surprise move the property intentionally hired 60 percent of its line staff without previous hotel experience so the management team could train them to its own high standards for refined service and create an atmosphere of friendliness. The Concierge Assistant reinforces that care by automating most guest service activities and reporting, thus creating orderliness and accuracy throughout the concierge process, and greatly reducing report generation activity for management oversight. “We are using technology to standardize the highest quality of guest service,” concluded Starling.


At HITEC 2005 in Los Angeles be sure to visit the Gold Key Solutions team at Booth 240 to receive a complete demonstration of The Concierge Assistant.


About The Marco Beach Ocean Resort
Perfectly situated on the Gulf of Mexico, Marco Beach Ocean Resort opened in 2001 bringing world class service and exquisite dining to Southwest Florida. Rated 4-Diamonds by AAA, it is one of Florida’s most luxurious beach resorts and a member of Preferred Hotels and ResortsÒ Worldwide. The all-suite independent hotel offers 84 luxurious one-bedroom and 15 elegant two-bedroom suites on the beach. All units are equipped with high thread-count European feather bedding, rich wood furnishings, kitchens, luxurious marble showers with separate bathtubs, and floor-to-ceiling glass doors. Spacious balconies from many suites command sweeping panoramic views of the blue green water of the Gulf of Mexico. A concierge is on duty 24 hours a day, and maid service is provided twice daily with turn down service. Guests are invited to enjoy the fitness facilities, personal fitness training, sauna and steam rooms, as well as an array of massages, body therapies and facials. Formal dining at the resort is truly a transporting experience. The recently opened Sale e Pepe restaurant transports guests to the ancient hills of Tuscany and the savory regions of the Southern Italy. The enchanting Toulouse Lounge enables guests to relax with cocktails and to dream about turn-of-the century Paris, while admiring the reproductions of this great French artist. Beachside and poolside bars are never far away dispensing cool refreshments.

About Gold Key Solutions
Gold Key Solutions’ The Concierge Assistant improves guest services and staff communication by creating orderliness and accuracy throughout the entire Concierge process for hotels of all types. The Windows-based software application increases staff efficiency and reduces expenses by automating all guest services activities and reporting, allowing managers to put in place a standard of excellence that may be continually refined. The Concierge Assistant is used by over 170 full-service Ritz Carlton, Marriott, Hyatt, Starwood, St. Regis, and other high-end properties. The Concierge Assistant is also employed by many residential living properties and by personal assistant and professional concierge companies to optimize services to each client.

Source: Hotel News Resource

USC Health Thought Prescription for Travel

Along with the extra socks, suntan lotion and hiking boots packed in the suitcases of travelers this summer, care should be taken to remember adequate or even extra doses of medications needed while traveling.

Kari Trotter Wall, Pharm.D., director of the USC University Park Campus Pharmacy, advises travelers on “maintenance medications” such as those to regulate blood pressure, cholesterol, diabetes or birth control, to plan ahead.

“Talk with the insurance benefits office to verify if they allow multiple months' supply of medications in the event of traveling,” says Trotter Wall. “The pharmacy may also be able to help patients determine if their insurance plan will cover a multiple month supply should they not have access to a pharmacy while traveling.”

Trotter Wall advises investigating these options at least two weeks before departing for the trip, in the event of any problems.

A second option for people vacationing away from home within the United States for more than a month is to transfer prescriptions between pharmacies over the phone. This enables them to be refilled on schedule at a pharmacy nearby.

Trotter Wall also recommends seeking pre-travel advice from a traveler's clinic or physician, particularly if you will be leaving the country. “Most travelers are exposed to diseases in other countries and become ill when a little pre-travel information and proper precautions could have avoided it.”

During travel, particularly if it is by plane, Trotter Wall advises keeping all medications in a carryon bag that you can keep close at hand. She also reminds people to read the instructions on the medications for proper storage.

“Some medications warrant refrigeration, so for those items it is good to check with the flight attendants to see if they can store items that absolutely need to be refrigerated,” says Trotter Wall.

It is also important to keep prescription drugs in their original containers. “For international travel, customs agents may at times be leery of the pill box with unlabeled medications,” says Trotter Wall.

In the event of a lost medication, travelers within the U.S. can call their home pharmacies to have their prescription transferred nearby, however they may have to pay for the replacement (unless their insurance has a provision for lost medications). International travelers may need to visit a travel clinic in the region for a new prescription, if their medications are available in the countries in which they are vacationing.

“If you are traveling internationally, it is best to treat your medications like you do your passport. Guard them carefully,” says Trotter Wall. “It is always a good idea to travel with a list of your current medications' doses and your physician's name and phone number.”

source: www.usc.edu

Wednesday, June 15, 2005

Arab airlines plan Arabesk alliance

Sabre Airline Solutions and the Arab Air Carriers Organisation (AACO), in close coordination with six Arab airlines, are studying the creation of a new ground-breaking alliance.

Egypt Air, Gulf Air, Middle East Airlines, Oman Air, Royal Jordanian Airlines and Saudi Arabian Airlines are participating in the study to create "Arabesk," the first airline alliance that coordinates the schedules of six close competitors.

The goal of creating this pan-Arab alliance is to provide financial benefits that the carriers could not achieve individually. According to Sabre, the benefits of such an alliance could be achieved by providing better separation of services, reducing the duplication of capacity, linking networks and destinations, generating market demand through improved customer connectivity and maximising capacity through route sharing and rationalisation. The combined network of the six carriers totals over 5,000 departures each week reaching from North America to the Far East, giving vast potential to the alliance.

Arabesk is being created on a strong analysis base. Sabre Airline Solutions is using its AirFlite suite of advanced network analysis tools, including Schedule Manager, Profit Manager and Fleet Manager in order to optimise the schedules of the six participating carriers.

In addition, Sabre Airline Solutions is using its unique data sources, including its Global Demand Dataset ('GDD') to ensure that the forecasted benefits are achieved. 'Our tools are being used in an innovative manner to create one 'virtual schedule' that combines the networks of the participating carriers. By optimising this schedule, the most profitable network for all of the carriers can be determined. The establishment of the Middle Eastern virtual alliance further expands Sabre Airline Solutions' presence in the region following recent contract announcements with Gulf Air, Egypt Air and Oman Air.

The step comes as a preparation to face an increase in European carrier operations. Middle Eastern airlines are coming under fire for their funding, financing and business practices, and European airlines might soon be offered more flights to the Gulf region as compensation, an industry onlooker said.

Missing from the Arabesk initiative is Emirates airlines, which was expected to order 50 widebody aircraft at the Paris Air Show, which is currently underway at Le Bourget in the north of the French capital, and whose fleet expansion will intensify calls from the industry for Gulf area countries to allow more competition in their regional aviation sector and for the airlines to be privatised, he added.



Al Diar Hotels and Etihad Airways stage joint promotion

Al Diar Hotels and Etihad Airways stage joint promotion Abu Dhabi, 15 June05 (WAM) - Al Diar hotels and resorts, part of Abu Dhabi National Hotels (ADNH), has joined forces with Etihad Airways to offer guests free round-trip tickets to any of Etihad Airways' destinations.

Guests checking in at any Al Diar hotels between June 15, and August 31, will be automatically entered into a daily raffle to win air tickets to any of the airline's 17 destinations. These include Amman, Bahrain, Bangkok, Beirut, London and Delhi. Guests will also enjoy 50 per cent off normal room rates at all Al Diar hotels and resorts during the special summer promotion.

Khalfan Al Shamsi, Marketing and Public Relations Manager, Abu Dhabi National Hotels said: "Last year's joint promotion was extremely successful, so we decided to team up again with Etihad Airways to offer our guests the best possible value for this summer. To make this year's promotion extra special, we are inviting winners to choose their own destination served by Etihad - so that's yet another reason to choose Al Diar and enjoy the hospitality and service we are famous for!" The ADNH promotion runs at all eight Al Diar hotels and resorts in Abu Dhabi and Fujairah (Al Diar Sands Hotel, Mina Hotel, Regency Hotel, Palm Hotel, Gulf Hotel and resort, Capital Hotel, Dana Hotel and Siji Hotel).

Al Diar is part of the Abu Dhabi National Hotels (ADNH) group.

Manfred P. Simons, Director of Hotel Operations, Abu Dhabi National Hotels, said: "We are proud of our association with Etihad Airways, the national airline of the UAE. Our capital is a diverse and vibrant city, it is growing rapidly as a destination for business and pleasure." Established in November 2003 as the national carrier of the UAE, Etihad is fast becoming one of the elite international airlines.

Raymond Korban, General Manager, South Gulf, Etihad Airways said: "Etihad Airways looks forward to again welcoming the winners of its summer promotional offer with Al Diar hotels and resorts.

"Etihad Airways has expanded rapidly since its launch and now serves 17 destinations in the Middle East, Europe and Asia. Our success shows that guests recognise the premium experience they receive when flying with Etihad," added Korban.

Source: WAM/MAB 19 53 CCCCQQE

Tuesday, June 14, 2005

MAS honoured with Skytrax five-star rating

National carrier Malaysia Airlines has been given a five-star rating by an international aviation-ranking organisation, one of four accorded this honour by Skytrax.

The Skytrax World Airlines Star Ranking programme covering 375 airlines from across the globe emphasises front-line product and service, particularly in international flight operations.

Other core areas include airport service, onboard product amenities and cabin seating comfort, onboard catering and cabin staff service.

In a statement, Skytrax marketing director Peter Miller said MAS’ marketing tagline of “Going beyond expectations” was well portrayed by its front line staff and was the defining element of the elevation to its status as a five-star airline.

“MAS cabin staff service is renowned as one of the world’s best – it has the required hallmarks of efficiency.

“But what sets it apart is a distinctive charm and character of service that is so reflective of the Malaysian culture.

“We are pleased to welcome MAS into this exclusive group that represents the very best of air travel today,” Miller said.

The other three airlines given five-star rating are Cathay Pacific Airways, Qatar Airways and Singapore Airlines.

Source: thestar.com.my

Row looming between Dublin Airport and airlines

A row is looming between Dublin airport and the airlines over the cost of security.

The airport authority is seeking €3m from the airlines which it says it is owed because of increased security measures since 9/11.

The airlines contend that the cost of additional checks is covered by general airport charges.

The matter is now expected to be referred to the aviation regulator who is already examining the issue of airport charges.

Source: breakingnews.ie

Monday, June 13, 2005

Gas prices may put crimp in travel plans

High prices at the gas pumps may be putting a major crimp in the vacation plans of many U.S. adults, a survey finds.

The survey, conducted by Thrifty Car Rental, found 80 percent of those surveyed say rising gas prices made an impact on their household plans this year.

The survey also found that 39 percent of drivers say gas prices have forced them to stay home more often, while 18 percent said it was the reason they changed their travel plans.

For those who canceled recent car rental plans, 64 percent said it was due to gas prices.

Thrifty recommends motorists to set aside money specifically for gasoline to avoid unexpected expenses, and mapping trips carefully to ensure taking the shortest, most direct route

Source: Big News Network

Flight delay reasons often perplexing

The Air Travel Consumer Report, a document assembled monthly by the Office of Aviation Enforcement and Proceedings, which is part of the U.S. Department of Transportation, offers some occasional gems of information for people who travel.

Some airlines are anxious to report the DOT findings -- especially when they show up in the top of the rankings of the various categories. Others that don't fare as well and a number of analysts who monitor the data aren't quite as enthusiastic.

Mike Boyd of the Boyd Group, an aviation consultant in Evergreen, Colo., for example, believes the report isn't worth much because the data reported by DOT are self-reported by the airlines and there are a number of gray areas involved when it comes to issues of flight delays, mishandled baggage, seat oversales and consumer complaints.

In Business' sister paper, the Las Vegas Sun, reported on some of the findings in the frequently delayed flights category.

McCarran International Airport ranked in the bottom half of the nation's 33 major airports for on-time departures and arrivals. McCarran officials cited weather as responsible for many of those delays.

Now I'm no meteorologist, but I'm sure more than one person was perplexed with flight delays being blamed on bad weather in Las Vegas, where we're usually bragging about our tans and how the sun shines most of the time.

Like many other parts of the DOT report, there are unexplained reasons for the numbers published.

Looking at the DOT stats, one would conclude that planes left McCarran on time 83.5 percent of the time in April. DOT categorizes causes of delay eight ways. On a national basis, planes left on time 83.4 percent of the time -- so McCarran is right at the national average.

The biggest reason for delays -- at 5.8 percent of the time -- resulted from a national aviation system delay. That means events not relating to weather-affected flights, such as air traffic control problems, heavy traffic volumes and airport operation issues.

That's a more likely culprit than weather at McCarran, where wind direction dictates from what direction planes land. The problem on McCarran's parallel north-south runways is that they're not far enough apart to allow planes to come in simultaneously and air traffic controllers have to space arrivals farther apart.

At most times of the day, it's not a problem, but when things get busy at McCarran, such as at night, it can result in some traffic jams.

The next most-frequent reason for a delay falls on the air carriers themselves, 4.4 percent. Those are circumstances within the control of the airlines, such as maintenance or crew problems.

Late-arriving aircraft delays are responsible for late departures 4.3 percent of the time. That affects McCarran as well when flights come in from East Coast destinations that are affected by weather.

Some delays are outright cancellations -- 1.3 percent of the time -- and other delays are attributed to flight diversions (something results in a plane making an unscheduled landing), 0.1 percent; extreme weather, 0.6 percent; and airport security delays, 0.04 percent.

One Southwest Airlines flight from Las Vegas that ranked third worst in the nation for being late among all operations falls in the category of "all of the above" when it comes to reasoning why it rarely pushes back on time. In April, the flight was late by 15 minutes or more 80 percent of the time.

Southwest Flight 1660, which leaves McCarran for Phoenix at around 5:15 p.m., is one of the last legs of the flight. That means the plane has to be on time everywhere else it has been before it arrives in Las Vegas to go out on time. It also comes in at a busy time of day at McCarran.

Some other nuggets from the most recent DOT report:

• The three busiest air carriers serving McCarran ranked fourth, sixth and eighth among 19 airlines in the nation on reports of mishandled baggage. United, the No. 2 carrier in the nation, but No. 3 at McCarran, was fourth in the report with 3.08 reports per 1,000 passengers. Local market leader Southwest was sixth with 3.1 reports per 1,000 and No. 2 America West was eighth with 3.39 reports per 1,000. The leader in the category: Hawaiian Airlines, with 2.9 reports per 1,000.

• In the first quarter report on denied boardings -- the DOT's category explaining how frequently airlines oversell seats on their planes -- the local big three placed fourth, eighth and 13th, with United, Southwest and America West maintaining the same order of ranking as in the mishandled baggage category. The No. 1 operator in that category: JetBlue, which has a policy of not overbooking its flights.

• In the category of consumer complaints, Las Vegas market leader Southwest was also the top carrier nationally with the fewest complaints, with 0.11 complaints per 100,000 boardings. America West was ninth with 0.81 complaints per 100,000 boardings and United was 10th with 0.83 per 100,000. At the bottom of the rankings: US Airways, which is in the midst of a merger with America West.

Source: - Richard N. Velotta / Staff Writer - In Business Las Vegas

Sunday, June 12, 2005

Giant planes and contracts at Paris show


Airbus A380 and A318 during testing ahead of the Paris Air Show
The A380 is seen as a flagship both for Airbus and for Europe
The undisputed main attraction at this year's Paris Air Show will be the first flying display to include the largest civilian aircraft ever built.

The Airbus A380 flyover, around lunchtime on Monday, should do much to divert attention from the squabbles surrounding the aircraft's maker:

  • Deliveries of the A380 super-jumbo have been delayed by at least half a year and many of Airbus' customers are upset as a consequence.
  • A lengthy political tug-of-war between France and Germany, the main stakeholders in Airbus' parent EADS, has caused severe delays in announcing who will become the company's new chief executive.
  • A long-running trade row over state support for both Airbus and its US competitor Boeing has raised uncertainty about its future projects.

Despite all this, and although the order book for the A380 has yet to bring the project to a break-even point, Airbus is already considering it a success.

The aircraft maker, which is jointly owned by European aerospace giants EADS (80%) and BAE Systems (20%), is instead firmly focusing on its much smaller A350, a plane that is being designed to compete head-on with Boeing's new flagship - the 787 Dreamliner.

However, due to the transatlantic trade spat, the much anticipated go-ahead to start work on the aircraft is now no longer expected to be announced at Paris.

Airbus has conceded that it may not be announcing a hundred orders for the plane as had been previously hoped.

On a wider level, Airbus' problems are significant.

Some observers point out that whereas Airbus is struggling, Boeing is enjoying considerable success at the moment.

Unless Airbus gets its act together, they say, Boeing could well reclaim the top spot as the world's leading civil aircraft maker within months.

Americans return

Beyond the two giants' battle for market share in the civilian aircraft market, the defence industry is gearing up for combat as well.

This year the Americans are back in force, having stayed away from "Old Europe" when the last Paris show was held in 2003, soon after the war in Iraq.

"People above the rank of colonel are going to be there, unlike two years ago. It's going to be a lot more busy," says Bank of America Securities aerospace analyst Nick Fothergill.

Flanking the generals will be a slew of senior officials representing US defence behemoths like Lockheed Martin and Northrop Grumman.

In 2003, US defence firms deemed it important to show loyalty to their government at a time of serious political tension over the war in Iraq - with the US clashing hard with France and Germany over its legitimacy.

Shrewd move

Eyeing a sharp rise in demand for their wares, the US arms manufacturers were in no doubt that their loyalty would pay off.

Lockheed Martin helicopter
Aircraft and helicopter makers are getting ready to do deals

They were right. In 2003, military spending rose 6% worldwide - double the growth rate seen in 2002 - with the Pentagon accounting for three quarters of the rise, according to the Stockholm International Peace Research Institute (Sipri).

Last year, the growth rate remained strong at 6%, with global military expenditure rising to more than $1 trillion, a level not seen since the Cold War.

The US, with its "war on terror" in Afghanistan and Iraq, accounts for almost half the total, observes Sipri.

"The main explanation for the current level of and trend in world military spending is the spending on military operations abroad by the US, and to a lesser extent, by its coalition partners," the think-tank says.

Joint ventures

After more than two years on the outside, European arms manufacturers are now getting ready to do deals with their American competitors, with a view to recovering lost ground.

"There's a theme of US companies teaming with European companies on aircraft or helicopters and bringing them into the US market," observes Merrill Lynch aerospace analyst Byron Callan.

A recent corruption scandal in the US - which culminated in the cancellation of a $23.5bn US Air Force leasing deal for a Boeing 767-300 refuelling tanker - has left the door ajar for Europe's EADS to get in on the act.

EADS is hoping to link up with Northrop Grumman, with the two jointly providing a replacement for the cancelled order, thus breaking into a market formerly tightly controlled by Boeing.

Such a deal would be good news for the outgoing Airbus chief executive Noel Forgeard and his co-chief at EADS, Tom Enders.

The two men, Mr Enders in particular, hope to oversee a revival of EADS's defence operations.

The Paris Air Show is held at the Le Bourget airport on the outskirts of the French capital. Monday 13 June to Thursday 16 June are reserved for industry officials and journalists.

The show is open for the general public from Friday 17 to Sunday 19 June.

Source: Jorn Madslien BBC News business reporter at the Paris Air Show (bbc.co.uk)