The annual Farnborough International Air show has begun on a quieter note this year. The exhibition, which doubles as a marketplace for manufacturers keen to sell the latest models, is hurting from soaring oil costs that have hit much of the industry.

While the air show is always an enjoyable event for the fans, the current mood of the industry is mixed: the high price of oil has left many Western airlines struggling to avoid bankruptcy, while companies from the Gulf are investing in large fleets, financed by oil wealth.

Howard Wheeldon, the aerospace and defense specialist said, "The oil price is the most significant factor in determining the way forward for airlines. We are seeing huge capacity cuts, we are seeing concern in the mature Western airlines. We are seeing it also in Far East Asia, Australia. We are also seeing a slight change of attitude that are appearing in Middle East airlines in terms of how they order."