Tuesday 23 / April / 2024
Dubai: Emirates unveiled a preliminary order worth $15 billion for 40 Boeing jets on Sunday, but kept Europe's Airbus 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 cancelled an order for 70 in 2014.
Its problems did not end there as an anticipated order for A380 superjumbos worth $16 billion failed to materialise at the last moment, forcing it into further talks to finalise a deal.
Airbus has been looking for a boost to the A380 superjumbo, which after a decade in service has seen sales decline in favour 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 honours. 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. 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.
That dispute has kept Qatar Airways, which four years ago ordered planes jointly with Emirates, away from the show.
"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 travellers, 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.
