SOME of the biggest names in aviation gathered at the Berlin Air Show yesterday to show off their latest products to a host of potential buyers amid sky-high oil prices and demand for lighter, more fuel-efficient planes.
Alternative fuels are expected to draw interest given the high cost of oil, which went as high as US$135 last week before settling back somewhat. Crude oil futures were up more than US$1 to US$133.10 yesterday in trading on London's ICE futures exchange.
Dutch airline KLM said on Monday it had signed a contract with AlgaeLink to provide fuel made from algae for a pilot project which will start in autumn, with the first test flight to take place then.
AlgaeLink plans a pair of plants this year - in the Netherlands and Spain - and said that the algae-based kerosene will be mixed with conventional fuel, but KLM's ultimate goal is to fuel its entire fleet with kerosene from algae and other plant-based oils.
The show - known formally as the Aerospace Exhibition and Conferences - lasts until Sunday at Berlin's Schoenefeld Airport, though it opens to the public only on Friday.
Besides flight shows and competitions, industry presentations and discussions, the activities also included a special ceremony yesterday marking the 60th anniversary of the Berlin Airlift, the largest airborne humanitarian operation ever.
Industry observers will be hoping for clues about market trends and various projects by companies including airline Deutsche Lufthansa AG; German airport operator Fraport AG; and European Aeronautic Defense and Space Co, the Franco-German parent of Airbus.
Some analysts are forecasting a barrel of oil reaching US$150-US$200 in the next year, leading the industry to look toward producing lighter, more efficient machinery, as well as turning to alternative fuels. Airports are trying, meanwhile, to streamline operations and reduce bottlenecks and improve efficiency.
"We estimate that at current fuel prices it would require a 20-percent increase in revenue, accompanied by a 20-percent reduction in capacity for US airlines, to generate economic returns," said Bob Mann, the president of R.W. Mann & Co, an airline analysis company based in Port Washington, New York.
Organizers of the International Aerospace Exhibit expect more than 1,000 exhibitors from some 40 countries.
The air show, started in 1909, is held every two years.