Gulf rules thin UK air show

By Tim Hepher and Bill Rigby

FARNBOROUGH (Reuters) - Gulf airlines disgorged $25 billion (12.5 billion pounds) on new planes as other buyers virtually disappeared on day one of a UK air show dominated by a shift in economic power towards the region harbouring most oil wealth.

Soaring oil prices have turned an industry boom on its head and prompted several airlines in western consuming countries to defer or cancel existing orders for planes, casting a pall over the opening of the world's largest air show at Farnborough.

But Abu Dhabi's Etihad Airways served up a 100-plane order worth $20 billion, split between Airbus (EAD.PA) and Boeing (BA.N) on Monday, to fuel expansion as the emirate competes with neighbouring Dubai to become a new focal point for aviation.

And with most other airlines nursing weak balance sheets or struggling to survive oil prices which have doubled in a year, there were signs that Etihad had managed to squeeze strong discounts out of the jetliner manufacturers.

Airbus Chief Executive Tom Enders said the order competition for the deal had been "hard fought" and "tough."

And sales chief John Leahy conceded that while the catalogue value of the Airbus part of the order was around $11 billion, "regretfully that is not exactly the amount that was paid."

Jetliners are traditionally sold at a discount to published list prices, but analysts say price pressures are on Airbus and Boeing now that a three-year boom in sales appears to be over.

Etihad ordered 25 Airbus widebody A350 aircraft, 10 A380 superjumbos and 20 single-aisle A320 planes in a transaction worth $11 billion at list prices.