Planemakers predict better times

The Dubai Airshow says it is the fastest growing airshow in the world

The world's two biggest planemakers, Airbus and Boeing, are forecasting a recovery in demand next year.

Airbus's chief operating officer, John Leahy, said he saw the market improving, adding there was no longer talk of cancellations and deferrals.

Boeing's Randy Tinseth, marketing chief for commercial planes, said 2010 would be the year of recovery and airlines would return to profitability in 2011.

The comments were both made at the Dubai Airshow.

Mr Tinseth added that the growth would come from the Middle East as well as "China, India and other emerging markets with dynamic populations and growing incomes".

Boeing also said it was in talks to enter a strategic partnership with the Abu Dhabi government-owned investment firm Mubadala. The discussions could lead to closer collaboration on research and development and on engineering.

Europe's Airbus also announced a deal to sell Yemenia Airways 10 A320 aircrafts worth about $700m, and Ethiopia Airways ordered 12 Airbus A350s.

Emirates, the biggest airline in the Arab world, said it was discussing buying planes from both Airbus and Boeing - but that details would not be announced at the airshow.

On Monday, EADS reported a loss for the third quarter of 87m euros ($130m; £78m) after its earnings were hit by the weak dollar.

However, the aerospace firm said it was "cautiously envisaging an improvement of the economic and market conditions in the next months".