Airbus bags $44 billion of orders at Dubai Air Show
European airplane maker Airbus dealt a powerful blow to U.S. rival Boeing Co. this weekend when it snatched a series of major orders, worth more than $44 billion at list prices, from Middle Eastern carriers at the Dubai Aerospace Air Show.
Over the last two years Dubai has joined Paris and the U.K.'s Farnborough air shows as a major battleground for the two aircraft manufacturers thanks to rapidly expanding Gulf-based airlines such as Emirates, Etihad and Qatar Airways. The show has boomed in synch with the industry, which is in the third year of record levels Airbus got off to a solid start by winning a highly coveted $31 billion order from Dubai-based carrier Emirates for 70 aircraft from the A350 XWB family. It also took options on 50 more.
Emirate President Tim Clark explained the airline was seduced by the larger size of the XWB in comparison with Boeing's 787 Dreamliner.
In another slap to Boeing, Emirates also turned down the revamped version of the 747 in favor of Airbus' flagship A380, firming up 8 orders for the double-decker and placing firm orders for three more.
Emirates, the Arab region's largest carriers and already Airbus' leading client for the A380 before the show with 55 orders, thus confirmed its commitment to the aircraft, despite the two-year delay dogging the program.
The A380, which can carry between 525 and 853 passengers, is seen as a promising acquisition for Emirates, which aims to make the Gulf state of Dubai a huge aviation "hub," connecting fliers with all four corners of the world.
As small consolation, Emirates also ordered 12 Boeing 777-300ERs, worth $3.2 billion at list prices. Manufacturers only disclosed list prices but aircraft are often sold at a discount.
DAE Capital places $13.7 billion order with Airbus; Prince orders 'flying palace'
There was more bad news for Boeing on Monday, when DAE Capital, the aircraft-leasing arm of Dubai Aerospace Enterprise, said it would purchase 70 Airbus A320s and 30 A350 XWBs for a total $13.7 billion at list prices.
"This agreement will help us meet the demand for new aircraft, particularly in the Middle East and Asia, over the next decade and more," Robert Genise, chief executive officer of Dubai Aerospace's DAE Capital leasing unit, said in a statement
"We are perfectly placed to secure our position by taking advantage of the significant growth of the aviation industry within this region and other emerging global markets," he added.
An order for the A380 also came from unusual quarters. Prince Alwaleed bin Talal bin Abdulaziz, the chairman of Kingdom Holding, made a single order for the VIP version of the aircraft, dubbed the A380 Flying Palace. Prince Alwaleed is also the only private owner of a Boeing 747.
Airbus is an EADS company. EADS shares were last up 3.7% in Paris morning trading. See Europe Markets.
Losing $44 billion of orders to Airbus couldn't come at a worst time for Boeing. Its 787 Dreamliner, the fastest-selling new plane in history, suffered a major setback in October when Boeing unveiled six-month delays to the first deliveries of the aircraft, citing supply-chain constraints. See story on the 787 delay.
Middle-Eastern carriers didn't entirely spurn Boeing, however. Qatar Airways ordered 30 787s and placed options to buy 30 more. It also bought 27 of the 777 model and took 5 options.
Separately, Rolls Royce Group said it would supply engines for the A350s ordered by Emirates in a deal that could be worth $8.4 billion if Emirates exercises all its options. Rolls-Royce shares were last up 3.6% in London morning trading. See London Markets.
Merrill Lynch analysts said the order marks an important switch for Emirates, which has usually bought engines from General Electric Co.
The broker said the latest order takes Rolls-Royce's market share of next-generation wide bodies to 52%, compared with 41% at GE and 7% at Pratt & Whitney, a division of United Technologies Corp.
The Dubai air show lasts until Thursday. Saudi Arabian Airlines and Air Arabia are among the airlines expected to announce orders later this week.of demand, spurred by new aircraft and the expansion of budget airlines. Source
Over the last two years Dubai has joined Paris and the U.K.'s Farnborough air shows as a major battleground for the two aircraft manufacturers thanks to rapidly expanding Gulf-based airlines such as Emirates, Etihad and Qatar Airways. The show has boomed in synch with the industry, which is in the third year of record levels Airbus got off to a solid start by winning a highly coveted $31 billion order from Dubai-based carrier Emirates for 70 aircraft from the A350 XWB family. It also took options on 50 more.
Emirate President Tim Clark explained the airline was seduced by the larger size of the XWB in comparison with Boeing's 787 Dreamliner.
In another slap to Boeing, Emirates also turned down the revamped version of the 747 in favor of Airbus' flagship A380, firming up 8 orders for the double-decker and placing firm orders for three more.
Emirates, the Arab region's largest carriers and already Airbus' leading client for the A380 before the show with 55 orders, thus confirmed its commitment to the aircraft, despite the two-year delay dogging the program.
The A380, which can carry between 525 and 853 passengers, is seen as a promising acquisition for Emirates, which aims to make the Gulf state of Dubai a huge aviation "hub," connecting fliers with all four corners of the world.
As small consolation, Emirates also ordered 12 Boeing 777-300ERs, worth $3.2 billion at list prices. Manufacturers only disclosed list prices but aircraft are often sold at a discount.
DAE Capital places $13.7 billion order with Airbus; Prince orders 'flying palace'
There was more bad news for Boeing on Monday, when DAE Capital, the aircraft-leasing arm of Dubai Aerospace Enterprise, said it would purchase 70 Airbus A320s and 30 A350 XWBs for a total $13.7 billion at list prices.
"This agreement will help us meet the demand for new aircraft, particularly in the Middle East and Asia, over the next decade and more," Robert Genise, chief executive officer of Dubai Aerospace's DAE Capital leasing unit, said in a statement
"We are perfectly placed to secure our position by taking advantage of the significant growth of the aviation industry within this region and other emerging global markets," he added.
An order for the A380 also came from unusual quarters. Prince Alwaleed bin Talal bin Abdulaziz, the chairman of Kingdom Holding, made a single order for the VIP version of the aircraft, dubbed the A380 Flying Palace. Prince Alwaleed is also the only private owner of a Boeing 747.
Airbus is an EADS company. EADS shares were last up 3.7% in Paris morning trading. See Europe Markets.
Losing $44 billion of orders to Airbus couldn't come at a worst time for Boeing. Its 787 Dreamliner, the fastest-selling new plane in history, suffered a major setback in October when Boeing unveiled six-month delays to the first deliveries of the aircraft, citing supply-chain constraints. See story on the 787 delay.
Middle-Eastern carriers didn't entirely spurn Boeing, however. Qatar Airways ordered 30 787s and placed options to buy 30 more. It also bought 27 of the 777 model and took 5 options.
Separately, Rolls Royce Group said it would supply engines for the A350s ordered by Emirates in a deal that could be worth $8.4 billion if Emirates exercises all its options. Rolls-Royce shares were last up 3.6% in London morning trading. See London Markets.
Merrill Lynch analysts said the order marks an important switch for Emirates, which has usually bought engines from General Electric Co.
The broker said the latest order takes Rolls-Royce's market share of next-generation wide bodies to 52%, compared with 41% at GE and 7% at Pratt & Whitney, a division of United Technologies Corp.
The Dubai air show lasts until Thursday. Saudi Arabian Airlines and Air Arabia are among the airlines expected to announce orders later this week.of demand, spurred by new aircraft and the expansion of budget airlines. Source
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