THE world's largest air show opened yesterday with several new orders for Boeing Co and aerospace executives upbeat about the future of the industry despite high fuel prices and the credit crisis.

The Farnborough International Airshow on the outskirts of London is traditionally ?? along with its sister show in Le Bourget in France on alternate years ?? the scene of a flurry of high profile orders for US-based Boeing Co and its European rival Airbus.

In an early, anticipated announcement, the recently launched low-cost airline FlyDubai announced an order for 50 next-generation 737-800s, worth around US$3.74 billion in total at current list prices. FlyDubai has substitution rights to convert its 737-800 orders to 737-900ERs in the future.

Meanwhile, Etihad Airways said it is placing an order for 45 Boeing aircraft worth US$9 billion at list prices, comprising 35 Boeing 787 aircraft and 10 Boeing 777-300ER.

Etihad, the national airline of the United Arab Emirates, is also placing options for another 25 Boeing 787s and 10 Boeing 777s. Aircraft deliveries will begin in 2011 and be completed by 2020.

In a smaller deal, Saudi Arabian Airlines signed a contract with Airbus for eight of the European plane maker's A330-300 wide body aircraft.

Other possible buyers include fellow Middle Eastern carrier Qatar Airways, All Nippon Airways, British Airways and Los Angeles-based International Lease Finance Corp, the world's biggest aircraft lessor.

But deals at this year's event, to be attended by more than 300,000 people, are expected to be thin compared with the Paris show last year, where 506 orders were taken between Airbus and Boeing. Credit Suisse said it expects around 200-300 orders to be announced at Farnborough.

Potential cancellations and delays have so far generated as much talk around the one-week air show as possible orders to purchase.

Escalating energy costs have eaten into airline profits, and 25 carriers have ceased operation in the past six months. The International Air Transport Association is forecasting industry-wide losses of US$2.3 billion.