Dubai Airshow: Airbus nails $30bn of new plane orders

The Dubai Airshow took off yesterday to a slow start amid little expectations of major orders to match the multi-billion-dollar sales generated at the last edition of the biennial fair. (AFP)
Updated 19 November 2019

Dubai Airshow: Airbus nails $30bn of new plane orders

  • Emirates claims biggest order of the show with 20 additional wide-body Airbus A350 aircraft

DUBAI: Airbus nailed down $30 billion in new plane orders on the second day of the Dubai Airshow after previous rounds of the biennial showcase saw its competitor Boeing take the lion’s share of deals.

The largest deal came from the Middle East’s biggest carrier, the Dubai-based Emirates, which announced it would be buying 20 additional wide-body Airbus A350s, bringing its total order for the aircraft to 50 in an
agreement worth $16 billion at list price. That deal, however, replaces a $21.4 billion agreement struck in February to purchase 70 Airbus aircraft, which had included 40
of the A330neo. Delivery is slated to start in 2023.

In another big announcement for Airbus, Emirati budget carrier Air Arabia said it would be purchasing 120 new Airbus planes in a deal worth $14 billion at list price.

Air Arabia, which operates mainly out of the emirate of Sharjah, already has a fleet entirely made up of Airbus. The new deal will include 73 A320neos, 27 A321neos and 20 A321 XLRs, with first
delivery in 2024.

It comes as one of the country’s main carriers, Abu Dhabi Etihad Group, announced recently a joint venture with Air Arabia to launch Air Arabia Abu Dhabi, the first low-cost airline based in Abu Dhabi.

Boeing, meanwhile, has used the public appearances of its executives the airshow to stress the company’s commitment to safety after two plane crashes killed
nearly 350 people after take-off from Indonesia in October of last year and from Ethiopia in March. The aircraft’s automated
flight-control system played a part in pushing the planes’ noses down until the jets plummeted.

The crashes forced the grounding of Boeing’s 787 Max fleet around the world. The company is now working to meet a
self-imposed deadline for US regulatory approval of changes to the aircraft and the training of pilots to get it flying again by January.

Despite its troubles, the Max won a vote of confidence from at least one buyer at the airshow. Turkey’s SunExpress announced a purchase of 10 additional 737-8 Max jets, bringing its overall order of the plane to 42. The deal is valued at $1.2 billion, but it’s likely the airline will negotiate for a better deal as Boeing talks to airlines about compensations for the grounding of the aircraft and reaches settlements with relatives of victims who perished.

“We have full confidence that Boeing will deliver us a safe, reliable and efficient aircraft,” CEO of SuxExpress Jens Bischof said. “This requires the undisputed airworthiness of the model... Our utmost priority at SunExpress is and has always been safety.”

The airline is based in the Turkish coastal city of Antalya and jointly owned by Turkish Airlines and Lufthansa.

It’s not the first major order for the jet since its grounding. In June, a mere two months after the second Max jet crashed, one of the world’s largest airline groups — IAG — announced its intention to purchase 200.

Meanwhile, Boeing touted its partnership with Abu Dhabi’s flagship carrier Etihad Airways on Monday as the companies unveiled one of the world’s most fuel-efficient long-haul airplanes. It comes as Etihad seeks to save costs on fuel and position itself as a more
environmentally-conscious choice for travelers.

Etihad’s “Greenliner” is a Boeing 787 Dreamliner that will depart on its first route from Abu Dhabi to Brussels in January 2020. Etihad’s CEO Tony Douglas described the aircraft as a flying laboratory for testing that could benefit the entire industry.

Related


China's aviation regulator raised concerns with Boeing on 737 MAX design changes

Updated 12 December 2019

China's aviation regulator raised concerns with Boeing on 737 MAX design changes

  • China is reviewing the airworthiness of the plane
  • China was first country to ground plane in March

BEIJING: China’s aviation regulator raised “important concerns” with Boeing Co. on the reliability and security of design changes to the grounded 737 MAX, it said on Thursday, but declined to comment on when the plane might fly again in China.
China is reviewing the airworthiness of the plane based on proposed changes to software and flight control systems according to a bilateral agreement with the United States, Civil Aviation Administration of China (CAAC) spokesman Liu Luxu told reporters at a monthly briefing.
He reiterated that for the plane to resume flights in China, it needed to be re-certified, pilots needed comprehensive and effective training to restore confidence in the model and the causes of two crashes that killed 346 people needed to be investigated with effective measures put in place to prevent another one.
China was the first country to ground the 737 MAX after the second crash in Ethiopia in March and had set up a task force to review design changes to the aircraft that Boeing had submitted.
The US Federal Aviation Administration (FAA) will not allow the 737 MAX to resume flying before the end of 2019, its chief, Steve Dickson, said on Wednesday.
Once the FAA approves the reintroduction into service, the 737 MAX can operate in the United States, but individual regulators could keep the planes grounded in other countries until they complete their own reviews.
“Due to the trade war, the jury is still out on when China would reintroduce the aircraft,” said Rob Morris, Global Head of Consultancy at Ascend by Cirium.
Chinese airlines had 97 737 MAX jets in operation before the global grounding, the most of any country, according to Cirium Fleets Analyzer.