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Free Zones Of UAE
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UAE Freezones Biz News Updates
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Boeing takes head start in Dubai with Emirates Dreamliner order
Emirates unveiled a preliminary order worth $15 billion for 40 Boeing (BA.N)
jets on Sunday, but kept Europe’s Airbus (AIR.PA) waiting for a lifeline
order for A380 superjumbos as the Dubai Airshow opened amid worries over
tensions in the Middle East.
The largest Middle East carrier signed a draft deal for the largest version
of Boeing’s Dreamliner, the 787-10, watched by Dubai Ruler Sheikh Mohammed
bin Rashid al-Maktoum, credited for the launch of Emirates more than 30
years ago.
Reuters earlier reported Boeing was close to clinching a deal for 787-10s,
upstaging expectations of an early Airbus deal for the larger A380.
Emirates chairman Sheikh Ahmed bin Saeed al-Maktoum said the carrier had
chosen the latest version of Boeing’s mid-sized wide-body jet after
comparing it with the Airbus A350.
Delegates said that comparison delivered a blow to Airbus which had been
competing to win back Dubai’s endorsement for its mid-sized A350 after
Emirates canceled an order for 70 in 2014.
Its problems did not end there as an anticipated order for A380 superjumbos
worth $16 billion failed to materialize at the last moment, forcing it into
further talks to finalize a deal.
Airbus has been looking for a boost to the A380 superjumbo, which after a
decade in service has seen sales decline in favor of smaller but highly
efficient long-haul jets.
Emirates had been expected to announce deals worth $30 billion shared
between Airbus and Boeing, whose envoys unusually found themselves rubbing
elbows while waiting for deals to pop.
But in a reminder of the unpredictable nature of the $100 billion industry,
some Airbus officials stepped into the packed room for a joint announcement,
only to see Boeing take the honors.
Top Airbus executives extended their stay as talks continued.
“Emirates are still talking to Airbus about it. There are no promises,” a
Gulf source said.
TRADE-INS
A key to the deal could be the extent to which Airbus is prepared to buy
back A380s due to leave the Emirates fleet.
“A few trade-ins will be involved,” a person familiar with the matter said.
Day one of the show brought $17 billion of civil orders even as business
confidence in the region wobbles, but business remained relatively modest
compared to the show’s peak in 2013.
A rift emerged in the summer between Qatar and Arab nations, including the
United Arab Emirates.
That dispute has kept Qatar Airways, which four years ago ordered planes
jointly with Emirates, away from the show.
Tensions deepened this month when Saudi Arabia, the region’s biggest
economy, detained dozens of top officials in an unprecedented, sweeping
corruption crackdown.
But Sheikh Ahmed said the Emirates 787 deal was proof that the region’s hub
aviation model was working.
He highlighted the impact on jobs in the United States, where Gulf airlines
are engaged in a dispute with domestic carriers who accuse them of using
subsidies: a charge they deny.
“This is a long-term commitment that supports hundreds of thousands of jobs,
not only at Boeing but throughout the aviation supply chain,” Sheikh Ahmed
said.
“Our announcement today also speaks to our confidence in the future of
aviation in the UAE and the region.”
In a sign of confidence in demand from premium travelers, Emirates unveiled
first-class suites developed in co-operation with luxury car maker
Mercedes-Benz.
Azerbaijan Airlines announced an order for five Boeing 787-8 Dreamliner jets
and two freighters.
In exhibition halls, defense firms were bullish about their ability to bag
contracts with the UAE and its Gulf Arab neighbors given rapidly escalating
tensions with Iran.
“We have good chances of closing more contracts with forces here,” said
Gabriel Ducroizet, sales manager with French firm Rafaut -- which produces
racks connecting bombs to warplanes.
The UAE announced a $1.6 billion deal with Lockheed Martin (LMT.N) to
upgrade 80 F-16 jet fighters.
November 12, 2017 |
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Courtesy Reuters
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