Dubai Airshow 2011 - Special Report

Emirates airline placed a blockbuster order for 50 Boeing 777 jetliners at the Dubai Air Show on Sunday, underscoring the confidence brimming among fast-growing Gulf airlines despite growing fears over the world economy.

The perennial war of words between Boeing and Airbus heated up with both sides accusing the other of delivery delays as the crowds gathered for the opening day of the Dubai Airshow on Sunday.

James Albaugh, the CEO of Boeing Commercial says rising oil prices are a double-edged sword for the planemaker. He also discusses production of the new 787.

Despite being profitable in 2011, the airline industry is bracing for turbulence in 2012. The combination of major tax increases and fuel prices that are widely expected to rise means there could be rougher skies ahead for the carriers. Passengers, as well, will likely face fewer frills, fewer route options and notably higher prices.

Gulf airlines and lessors could splash out more than $20 billion on Airbus and Boeing  jets at next week's Dubai air show, underscoring the region's role as the industry's chief paymaster amid Europe's worsening sovereign debt crisis.