The deal will see the UAE purchase two new Global 6000 long-range surveillance aircraft, which boast Bombardier engines and enhanced security, while the two Saab 340 jets already owned by the UAE will undergo systems upgrades.
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Emirates, the Mideast’s top airline, has expanded its cargo operation to Dubai’s new airport.
The previous Dubai show, in 2013, notched up a record $206bn in orders for passenger aircraft.
But after a spending spree over recent years, airlines have reined in orders.
UAE and SAAB: The United Arab Emirates Air Force announced Monday a $1.27 billion deal with Swedish defense giant Saab to purchase two surveillance planes and upgrade two others.
The deal announced Monday comes as Saudi Arabia leads a war in Yemen and is part of the U.S.-led coalition bombing the Islamic State group in Syria.
And with the production lines of planemakers Boeing and Airbus booked for years to come, it was no surprise that the Gulf’s big three carriers “paused for breath”, said Richard Aboulafia, vice president at U.S. aerospace consultancy Teal Group.
It was the first big announcement at the show, which opened Sunday amid low expectations for major sales.
“It has been a very subdued start to the show and this reflects the reality of the market place”, Saj Ahmad, chief analyst at London-based StrategicAero Research, told Khaleej Times.
Orders seen so far this year at the Dubai Airshow fall way short of those seen at the event two years ago.
India’s premier worldwide airline, Jet Airways, has made its largest-ever fleet order for 75 Boeing 737 Max aircraft.
There were no terms for the deal discussed, though the retail list price of the aircraft is easily over $3 billion.
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The contract covers “the maintenance, fix and overhaul (MRO) of the GE9X engines that will power the airline’s fleet… over a period of 12 years”, the carrier said in a statement, adding that it was Emirates’ largest contract of its kind.
