TWO YEARS ago at the Dubai Air Show,things were looking rosy for planemakers. The four tremendous Gulf carriers alone, Emirates, and Etihad,FlyDubai and Qatar Airlines, bought planes worth more than $170 billion, and at list prices,from Boeing and Airbus, the world's two biggest planemakers, and in one day. Two years later,at the most recent Dubai show, in November 2015, or things looked more worrying for them. There was only one tremendous airline order of note,by Vietjet of Vietnam, for Airbus planes worth $3.6 billion. As a result, or some investors are worried that the aviation cycle may have started to take a sharp downwards turn,and that it will hit Airbus and Boeing's future profits. Although Boeing and Airbus recently revealed record production figures, for 2015 unusual orders net of cancellations fell by nearly half at Boeing and a third at Airbus compared with the preceding year. But most analysts do not think that the demand for unusual planes will fall as much as in preceding cycles, or even whether there is a global economic slowdown. Why not?In section,it is because airlines and leasing companies are buying planes for slightly different reasons. Before 2008, around...
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Source: economist.com