=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2006/02/21/financial/= f020124S58.DTL --------------------------------------------------------------------- Tuesday, February 21, 2006 (AP) Asian Air Show Begins in Singapore By SEAN YOONG, Associated Press Writer (02-21) 02:32 PST SINGAPORE, (AP) -- Boeing Co. snagged the first big deal at Asia's biggest air show Tuesday, an order for 10 jets from Indian budget carrier Spicejet, as aviation companies tried to coax regional customers to splurge on superjumbos and sophisticated jet technology. Airbus flew in the world's largest passenger plane, the A380, to awe potential purchasers at the Asian Aerospace exhibition in Singapore, while rival Boeing urged carriers to consider acquiring the wide-bodied 747-8, a more fuel-efficient version of the old workhorse jumbo that is expected to be ready for delivery in 2010. Other heavyweights such as the largest U.S. defense contractor, Lockheed Martin Corp., Sweden's Gripen-SAAB, Dassault Aviation of France and Russian manufacturer Sukhoi showcased cutting-edge combat aircraft for countries across Asia that are boosting their defense budgets. Lockheed Martin voiced optimism about winning orders from the Indian Air Force, which plans to buy 126 new fighter jets. Besides Lockheed's F-16 Fighting Falcons, India is believed to be looking at Boeing's F/A-18 Super Hornets, French Mirages, Swedish Gripens and Sukhoi fighters. "I'd like to say (our chances) are great," June Shrewsbury, Lockheed's general manager for F-16 programs, told reporters. "We think the F-16 can offer a tremendous capability to the Indian Air Force." The previous Asian Aerospace in 2004 culminated in deals worth $3.6 billion. "Asia is becoming a huge market for the aerospace industry," said Ghazemy Mahmud, the Malaysian-based editor of the Asian Defense Journal. "Countries here are developing swiftly, and their purchases of commercial and military aircraft are speeding up together with their economic growth." The most lucrative clients look to be China and India. China expects to buy about 100 planes a year during the next five years, while India's aviation sector is booming with an average passenger growth rate of between 25-30 percent in recent years. This year's Asian Aerospace conference, which runs through Sunday, has more than 930 exhibitors from 43 countries. At least 27,000 trade representatives are expected at the biennial show, which ranks third globally behind shows held in alternating years in Paris and Farnborough, just outside London. The rivalry between Chicago-based Boeing and Toulouse, France-based Airb= us is taking center stage. Airbus was flying high after finalizing a deal with Indian airlines on Monday to sell 43 A320 and A319 passenger jets for $2.5 billion. Boeing struck back Tuesday, announcing that Spicejet Ltd. has ordered 10 aircraft and taken an option to order another 10. The order, which exercises an existing option, is for five 737-800 series planes and five 737-900ER series planes, the two companies said at a press conference. The aircraft, which have a list price of around $70 million each, is designed to carry more passengers and fly farther than existing models of the single-aisle plane. Airbus has the aerospace show's star attraction with the double-decker A380, which will overtake Boeing's 747 as the world's largest commercial jet when it enters service with Singapore Airlines Ltd. by the end of the year. Seven airlines in the Asia-Pacific have ordered a total of 49 A380s, which can seat 550 passengers in three classes or 800 passengers in a single class. Airbus' chief operating officer John Leahy said Monday that deliveries won't be held up after the jet failed a wing stress test last week. Meanwhile, Boeing is lobbying carriers to order the 450-seat 747-8 and i= ts wide-body sibling, the 777, which is competing with Airbus' A340. Boeing won 154 orders for the 777s in 2005, while the A340 attracted only 15 firm orders. Boeing said in a statement it "enters Singapore with terrific momentum across the company," while Airbus SAS stressed it came with "a positive outlook after achieving record orders, deliveries and profitability in 2005." The show will relocate starting 2008 to Hong Kong, which organizers say = is an ideal gateway to China's aviation market and has better facilities. ----= ------------------------------------------------------------------ Copyright 2006 AP