Le Bourget air show kicks off with deals for Gulfstream and Boeing.

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

The Le Bourget air show in Paris, France commenced on Saturday (16 June) with several contract announcements and market projections.

United BizJet Holdings, an affiliate of United Airlines of America placed a

USD1.3bn order for 35 business jet aircraft with Gulfstream Aerospace Corp, a subsidiary of General Dynamics, which includes a firm order for 12 jets and an option on another 23. In other deals, German carrier Lufthansa AG indicated that it was signing up for Boeing Co's Internet/e-mail service, Connexion by Boeing - the first European carrier to do so according to The Associated Press. The deal is for 80 Lufthansa aircraft in the carrier's intercontinental fleet.

Meanwhile, Airbus Industrie chief Noel Forgeard said that the European aircraft manufacturer would be continuing with plans to increase production targets for narrow- and wide-bodied commercial aircraft, while also predicting a 'soft landing' for the aircraft market. Aircraft demand has reportedly slowed, with Airbus Industrie executives telling Reuters that this was attributed to a global economic slowdown.

John Leahy, Airbus Industrie's commercial director said that the slowdown was being felt most in options rather than the firm order book and stated, 'We are not seeing more cancellations or order delays than you would normally expect. What we are seeing is that only about 50% of options are being exercised, which is manageable.' Forgeard also indicated however that there were some 'significant announcements in the pipeline.'

In related news, Rolls-Royce Plc, a British aero-engine manufacturer, stated that it expects strong demand for both large and regional aircraft and corporate jets to continue. The company's chairman Sir Ralph Robins forecast that the industry would need more than 100,000 civil aero engines over the next 20 years, which would be worth about USD465bn according to PA News.

Robins stated that his company was 'well positioned to compete in all sectors.'

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