A great show in challenging times

FARNBOROUGH, England (CNN) -- Farnborough marks its 60th anniversary during a year when the aviation industry is being hit hard by high oil prices and faltering economies.

Undaunted, the airshow celebrated more than half a century of aeronautical innovation with a few thrills -- like the first showing outside the U.S. of a F-22 Raptor fighter jet.

It is the cream of the crop for the U.S. Air Force and is believed to be its fastest -- and most agile -- fighter.

But despite Monday's sunny skies, it was impossible to ignore the twin dark clouds of high oil prices and a stumbling world economy on the horizon.

But optimism remains for the long term, thanks to the emerging economies.

"People are still flying. China is building 97 airports by 2020. They need to fill those airports. They are going to have a lot of people travelling," Paul Edwards of Jefferies International investment bank told CNN.

Boeing got off the mark first with a deal with a list price of nearly $4 billion with new Middle East low cost carrier, FlyDubai.

But even heavyweight Emirates Airlines is putting on the brakes for now and will announce no new orders here.

"We have 170 airplanes on order. We want to see how the economic conditions pan out over the next year before we go ahead. We are still looking at our fleet and will be back in the ordering business before too long. At this point in time, we are just catching our breath a little bit" said Tim Clark, President, Emirates Airlines.

Just as this year's Airshow was looking tame, Airbus pulled off a major order.

Abu Dhabi-based Etihad Airways put in a firm order for 55 airplanes -- including 10 A-380 superjumbos.

Etihad said it was looking way beyond worries about high oil prices and economic slowdown in the West.

"The Emirate of Abu Dhabi is investing an estimated $200 billion during the next 10 years to diversify away from oil-based economy and tourism is a major strand in that diversification as we move forward," said James Hogan of Etihad Airlines at a press conference at Farnborough.

Farnborough also goes big on military aircraft and the focus this week is how the U.S. defense budget could be affected by the upcoming election.

But the $60 billion airline industry is in deep trouble. Some estimate it will lose a tenth of that value this year alone. This means more airlines are certain to go out of business.

One of the best ways for airlines to save money is to fly the new fuel efficient planes. The drawback is that they cost a lot of money -- something few in the industry outside the Middle East has right now.

That's why this is one of the most challenging airshows in Farnborough's 60 year history.